ConocoPhillips COP today announced it has entered into an agreement to
sell its Algerian business unit for a total of $1.75 billion plus customary
adjustments. The proposed sale is subject to co-venturer preemption rights and
Algerian government approval.
ConocoPhillips has entered into an agreement with Pertamina to sell its
wholly-owned subsidiary, ConocoPhillips Algeria Ltd., which holds interests in
three major onshore oil fields located either fully or partially in Block
405a, Menzel Lejmat North (65 percent, operated), Ourhoud (3.7 percent,
nonoperated), and EMK (16.9 percent, nonoperated). ConocoPhillips' 2012 net
production from these fields averaged 11 thousand barrels of oil equivalent
per day through October, and at Oct. 31, 2012, the net carrying value of
ConocoPhillips' Algerian assets was approximately $850 million.
The transaction is anticipated to close by mid-2013. Through Sept. 30, 2012,
the company's 2012-13 asset disposition program has yielded proceeds of $2.1
billion. Including this transaction, the company has announced additional
asset sales that are expected to generate proceeds of approximately $7 billion
when complete. Funds generated from these transactions are intended to be used
for general corporate purposes.
The proposed sale of its Algerian business unit is part of ConocoPhillips'
plan to increase value for shareholders through portfolio optimization,
focused capital investments that deliver growth in production and cash
margins, improved returns on capital, and sector-leading shareholder
distributions.
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