Calgary Herald

Indonesia state firm buys in Algeria

Conocophil­lips sells unit for $1.75 billion

- DAVID WETHE

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.

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