The merger will make the new company, to be called ConocoPhillips, the sixth-largest energy company in the world on the basis of hydrocarbons reserves. It is expected to have an enterprise value of $53,500 million and to make cost savings of about $750 million a year through the merger.

Conoco has a strong Middle East presence. Upstream, it has interests in Syria and Dubai as well as involvement in Project Kuwait and Core Venture 3 of the Saudi gas initiative. It has also been active in Iran and Libya. Downstream, it is targeting a role in the Dolphin gas project. Phillips’ interests in the Middle East are mainly downstream and include a presence in Qatar’s petrochemical development. It is also a participant in the gas initiative, working on Core Venture 1 under the leadership of ExxonMobil.