ConocoPhillips Completes $1.75 Billion Sale Of Algeria Business

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$1,750.0MM
Description

Purchased the Algeria business unit including interest in three major onshore oil fields.

ConocoPhillips (NYSE: COP) completed its $1.75 billion transaction with Pertamina for the sale of its Algeria business unit, the company announced Nov. 27.

“We are pleased to complete this transaction with Pertamina,” Don Wallette, executive vice president of commercial, business development and corporate planning, said in a news release. “We appreciate the long and productive relationship we have had with the government of Algeria and with Sonatrach, the national oil company of Algeria."

ConocoPhillips wholly-owned subsidiary, ConocoPhillips Algeria Ltd., held interest in three major onshore oil fields located either fully or partially in Block 405a, Menzel Lejmat North (65% operated), Ourhoud (3.7% non-operated), and EMK (16.9%, non-operated).

ConocoPhillips announced plans to sell its Algeria unit last December at nearly the same time as its proposed deal to sell its onshore and offshore Nigerian business unit to an affiliate of Oando Plc. However, the Nigerian deal has been on the rocks.

In September, COP agreed to give Oando more time to find financing, extending the agreement’s termination date to Nov. 30. Oando received signed commitment letters for up to $815 million of financing in October for the acquisition. However, COP has showed signs of restlessness. The deal was originally worth $1.65 billion, but Oando backed out of the Brass LNG project. The remaining assets will cost an estimated $1.22 billion.

The company’s divestiture proceeds from 2012 through 3Q 2013, plus this sale and the recently completed Kashagan sale, have totaled $12.4 billion. These proceeds will be available for general corporate purposes, including investments in the company’s organic growth programs.

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and NGLs on a worldwide basis. The company is headquartered in Houston.