Indonesia state firm buys in Algeria
Conocophillips sells unit for $1.75 billion
ConocoPhillips, the largest U.S. independent oil producer, agreed to sell its Algerian unit to Indonesia’s PT Pertamina for $1.75 billion, marking its exit from the North African nation.
The unit being sold holds stakes in three onshore oilfields, Houston-based ConocoPhillips said in a statement today.
ConocoPhillips’ 2012 net production from the fields was the equivalent of 11,000 barrels of oil a day.
The transaction, expected to close by mid-2013, is subject to approval from the Algerian government and the company’s partners in the fields. It would bring to about $9 billion the proceeds from ConocoPhillips asset sales.
The company has previously targeted $8 billion to $10 billion in asset sales this year and next, to focus on investment in more profitable businesses.
“The sale of our Algerian business unit represents another important step in transforming ConocoPhillips’ asset base, and advances the strategic interests of both Pertamina and ConocoPhillips,” Don Wallette, executive vice-president of corporate planning, said in the statement.
The acquisition would be the third and largest this year for Jakartabased Pertamina, Indonesia’s stateowned oil company.
The sale includes 65 per cent of Menzel Lejmat North, 3.7 per cent of Our houd and 16.9 per cent of EMK. ConocoPhillips’s partners in the fields include Talisman Energy Inc., Anadarko Petroleum Corp., Eni SpA and Sonatrach Petroleum Corp., Algeria’s state-owned oil company.