2.2.0.7 false Investments, Loans and Long-Term Receivables 0206 - Disclosure - Investments, Loans and Long-Term Receivables true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Pure Standard http://www.xbrl.org/2003/instance pure xbrli 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Investments, Loans and Long-Term Receivables [Abstract] 0 cop_InvestmentsLoansAndLongTermReceivablesAbstract cop false na duration Investments, Loans and Long-Term Receivables. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Investments, Loans and Long-Term Receivables. false 3 Investments, Loans and Long-Term Receivables 1 us-gaap_EquityMethodInvestmentsDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10.5pt; margin-top: 21pt"><b>Note 6—Investments, Loans and Long-Term Receivables</b> </div> <div align="left" style="font-size: 10.5pt; margin-top: 10.5pt"><b>LUKOIL</b> </div> <div align="left" style="font-size: 10.5pt">Our average ownership interest in LUKOIL in the second quarter of 2010, used to record our equity-method share of LUKOIL’s second-quarter results on a lag basis, was 19.46 percent. On July 28, 2010, we announced our intention to sell our entire interest in LUKOIL, then consisting of 163,367,629 shares. This decision is being implemented as follows: </div> <div style="margin-top: 10.5pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.5pt; text-align: left"> <tr valign="top" style="font-size: 10.5pt; color: #000000; background: transparent"> <td width="3%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>On July 28, 2010, we entered into a stock purchase and option agreement (the Agreement) with a wholly owned subsidiary of LUKOIL, pursuant to which such subsidiary would purchase 64,638,729 shares from us at a price of $53.25 per share, or $3.44 billion in total. This transaction closed on August 16, 2010.</td> </tr> <tr> <td style="font-size: 1pt"> </td> </tr> <tr valign="top" style="font-size: 10.5pt; color: #000000; background: transparent"> <td width="3%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>Also pursuant to the Agreement, the LUKOIL subsidiary had a 60-day option, expiring on September 26, 2010, to purchase any or all of our interest remaining at the time of exercise of the option, at a price of $56 per share. Upon exercise of this option, we sold 42,500,000 shares on September 29, 2010, for proceeds of $2.38 billion.</td> </tr> <tr> <td style="font-size: 1pt"> </td> </tr> <tr valign="top" style="font-size: 10.5pt; color: #000000; background: transparent"> <td width="3%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>Finally, we intend to sell our remaining shares in the open market from time to time, subject to the terms of the Shareholder Agreement, by the end of 2011.</td> </tr> </table> </div> <div align="left" style="font-size: 10.5pt; margin-top: 10.5pt">In total, during the third quarter of 2010, we sold 113 million shares of LUKOIL for $6,161 million, realizing a before-tax gain on disposition of $1,219 million, which was included in the “Other income” line of the consolidated income statement. As a result of these sales, our ownership interest has declined to a level at which we are no longer able to exercise significant influence over the operating and financial policies of LUKOIL, and going forward we will no longer account for our remaining investment in LUKOIL using the equity method. We will also no longer report proved reserves or production related to our LUKOIL investment, which were 1,967 million barrels of oil equivalent (BOE) at December 31, 2009, and 437 thousand BOE per day for the nine-month period ended September 30, 2010, respectively. </div> <div align="left" style="font-size: 10.5pt; margin-top: 10.5pt">At September 30, 2010, our remaining 5.9 percent investment in LUKOIL was reclassified from “Investments and long-term receivables” to current assets on our consolidated balance sheet as an available-for-sale equity security and carried at fair value of $2,856 million, reflecting a closing price of LUKOIL shares on the London Stock Exchange of $56.80 per share. The carrying value reflects a pretax unrealized gain over our cost of $663 million. This unrealized gain, net of related income taxes, is reported as a component of accumulated other comprehensive income. The fair value is categorized as Level 1 in the fair value hierarchy. See Note 2—Changes in Accounting Principles, for additional information about accounting for our LUKOIL investment. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10.5pt; margin-top: 10.5pt"><b>Loans to Related Parties</b> </div> <div align="left" style="font-size: 10.5pt">As part of our normal ongoing business operations and consistent with industry practice, we invest and enter into numerous agreements with other parties to pursue business opportunities, which share costs and apportion risks among the parties as governed by the agreements. Included in such activity are loans made to certain affiliated companies. Significant loans to affiliated companies at September 30, 2010, included the following: </div> <div style="margin-top: 10.5pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.5pt; text-align: left"> <tr valign="top" style="font-size: 10.5pt; color: #000000; background: transparent"> <td width="3%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>$663 million in loan financing to Freeport LNG Development, L.P.</td> </tr> <tr> <td style="font-size: 1pt"> </td> </tr> <tr valign="top" style="font-size: 10.5pt; color: #000000; background: transparent"> <td width="3%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>$1,096 million in project financing and an additional $94 million of accrued interest to Qatargas 3.</td> </tr> <tr> <td style="font-size: 1pt"> </td> </tr> <tr valign="top" style="font-size: 10.5pt; color: #000000; background: transparent"> <td width="3%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>$551 million in loan financing to WRB Refining LLC.</td> </tr> </table> </div> <div align="left" style="font-size: 10.5pt; margin-top: 10.5pt">The long-term portion of these loans are included in the “Loans and advances—related parties” line on the consolidated balance sheet, while the short-term portion is in “Accounts and notes receivable—related parties.” At September 30, 2010, the Varandey Terminal Company is no longer considered a related party. Accordingly, the long-term portion of this loan is included in the “Investments and long-term receivables” line of the consolidated balance sheet, while the short-term portion is in “Prepaid expenses and other current assets.” </div> <div align="left" style="font-size: 10.5pt; margin-top: 10.5pt"><b>Other Investments</b> </div> <div align="left" style="font-size: 10.5pt">We have investments remeasured at fair value on a recurring basis to support certain nonqualified deferred compensation plans. The fair value of these assets at September 30, 2010, was $315 million, and at December 31, 2009, was $338 million. Substantially the entire value is categorized in Level 1 of the fair value hierarchy. These investments are measured at fair value using a market approach based on quotations from national securities exchanges. </div> <div align="left" style="font-size: 10.5pt; margin-top: 10.5pt">Merey Sweeny, L.P. (MSLP) is a limited partnership that owns a 70,000 barrel-per-day delayed coker and related facilities at the Sweeny Refinery. MSLP processes our long residue, which is produced from heavy sour crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. Prior to August 28, 2009, MSLP was owned 50/50 by us and Petróleos de Venezuela S.A. (PDVSA). Under the agreements that govern the relationships between the partners, certain defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery gave us the right to acquire PDVSA’s 50 percent ownership interest in MSLP. On August 28, 2009, we exercised that right. PDVSA has initiated arbitration in the International Chamber of Commerce challenging our actions, and this arbitration is underway. We continue to use the equity method of accounting for our investment in MSLP. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 false 1 2 false UnKnown UnKnown UnKnown false true