ConocoPhillips closes $1.75 billion sale of Algeria business

ConocoPhillips completed the sale of its Algeria business unit ConocoPhillips Algeria Ltd. to Indonesian state-owned Pertamina for $1.75 billion, resulting in $1.65 billion in proceeds. The sale was agreed upon in December 2012 (OGJ Online, Dec. 18, 2012).

ConocoPhillips Algeria owns interests in three onshore oil fields on or partly on Block 405a, with total production net to ConocoPhillips of 11,000 boe/d. The unit operates the Menzel Lejmat North field with 65% interest. Its other interests are Ourhoud 3.7% and nonproducing EMK 16.9%.

In November 2012, ConocoPhillips agreed to sell 8.4% interest in the North Caspian Sea production-sharing agreement, including Kashagan offshore oil field, to India’s state-owned ONGC Videsh Ltd. (OGJ Online, Nov. 27, 2012).

However, the Kazakhstan government preempted the bid under the country’s subsoil law. State-owned KazMunaiGaz instead agreed to buy the interest, the proceeds of which ConocoPhillips expected to remain at $5 billion (OGJ Online, July 3, 2013).

The moves are part of ConocoPhillips’s 2012-13 disposition program to “increase value for shareholders through focused capital investments.”

From 2012 through third-quarter 2013, the company has generated $12.4 billion in divestiture proceeds, which may be used for general corporate purposes, including investments in its organic growth programs, ConocoPhillips said. The company originally set a target of $8-10 billion by December 31.

As of Sept. 30, ConocoPhillips had operations and activities in 29 countries, $55 billion in annualized revenue, and $120 billion of total assets.