ConocoPhillips to Sell Algerian Unit for $1.75B
ConocoPhillips agreed to sell its Algerian business unit to Indonesian state energy company PT Pertamina for $1.75 billion, plus customary adjustments, as part of its ongoing asset-disposition program.
ConocoPhillips Algeria Ltd. holds interests in three major onshore oil fields that averaged 11,000 barrels of oil equivalent per day through October. The company said the net carrying value of its Algerian assets was roughly $850 million as of Oct. 31.
ConocoPhillips expects to close the transaction by mid-2013.
The Houston-based energy company is in the midst of a three-year repositioning aimed at improving its balance sheet and focusing on more profitable, less risky unconventional fields in North America. ConocoPhillips has sold or plans to sell more than $7 billion in assets in 2012, including a $5 billion sale of its stake in Kazakhstan's Kashagan field in the Caspian Sea announced last month. The company also spun off its refining arm earlier this year to Phillips 66.
Shares closed Monday at $58.28 and were inactive premarket. The stock is up 5% so far this year.
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