Conoco Sells Algerian Assets
As part of its strategy to boost shareholder value by selling off noncore assets, ConocoPhillips (NYSE: COP) this morning announced that it is selling its onshore assets in Algeria to Indonesia's state-owned oil company Pertamina for $1.75 billion. The sale is subject to a refusal right by Conoco's joint venture partners and approval by the Algerian government. The sale is expected to close by mid-2013.
Conoco's partner in the Menzel Lejmat North field is Canada's Talisman Energy Inc. (NYSE: TLM), which owns 35% of the venture. Conoco is the majority owner and operator.
Conoco is also shedding its 3.7% nonoperating stake in the Ourhoud field and its 16.9% nonoperating stake in the El Merk field. According to the press release, Conoco's net production from the three fields totaled 11,000 barrels of oil equivalent per day through October of this year, and the net carrying value of the assets totaled approximately $850 million. Partners in these fields include Anadarko Petroleum Corp. (NYSE: APC), Eni SpA (NYSE: E) and Algerian state oil company Sonatrach.
So far this year Conoco has garnered proceeds of $2.1 billion from asset sales, and the company expects to generate a total of $7.1 billion from additional, previously announced sales.
Shares of Conoco are up 0.3% in premarket trading this morning, at $58.48 in a 52-week range of $50.62 to $78.29.
Filed under: 24/7 Wall St. Wire, Commodities, International Markets, Oil & Gas Tagged: COP, TLM