ConocoPhillips Announces Further Progress on Asset Disposition Program with Intended Sale of Nigerian Business Unit

abarrelfullabarrelfull wrote on 21 Dec 2012 07:54
Tags: africa conoco nigeria oando upstream

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ConocoPhillips (NYSE: COP) today announced it has entered into agreements to sell its Nigerian business unit for a total of $1.79 billion plus customary adjustments.

ConocoPhillips has entered into agreements with affiliates of Oando PLC to sell its Nigerian business unit. This includes two offshore properties consisting of a 95 percent operated interest in OML 131 (Chota Field) and 20 percent nonoperated interest in OPL 214 (Uge Field), as well as a 20 percent nonoperated interest in onshore OMLs 60-63 (NAOC joint venture), a 20 percent nonoperated interest in the Kwale-Okpai Independent Power Plant and a 17 percent nonoperated interest in the Brass LNG project. ConocoPhillips’ 2012 net production in Nigeria averaged 43 thousand barrels of oil equivalent per day through October, comprising approximately 60 percent natural gas and 40 percent liquids. At Oct. 31, 2012, the net carrying value of ConocoPhillips’ Nigerian assets was approximately $600 million.

“This intended sale represents further progress on our asset disposition program,” said Don Wallette, executive vice president, Commercial, Business Development, and Corporate Planning. “We are pleased that Oando PLC recognizes the value of this asset.”

The transaction is anticipated to close by mid-2013, following appropriate consultations with stakeholders. Including this transaction, the company has announced total asset sales of approximately $11 billion during 2012. Proceeds from these divestitures will allow the company to continue executing its existing growth programs and capture new opportunities for the future.

The proposed sale of its Nigerian 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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