ConocoPhillips in $1.79bn Nigeria exit

ConocoPhillips will sell its Nigerian onshore and offshore operations in Nigeria to Oando Energy Resources for about $1.79 billion, the companies said.

The Houston-based supermajor is in the process of selling off billions of dollars worth of assets so it can focus its attention on cheaper domestic exploration and production.

Nigeria- and Gulf of Guinea-focussed Oando said it paid a $435 million cash deposit to ConocoPhillips upon signing the deal announced late Thursday.

The deal includes ConocoPhillips' interest in onshore and offshore properties in Nigeria that produced 43,000 barrels of oil equivalent per day through October.

Onshore, Oando will take over a ConocoPhillips subsidiary which holds a 20% non-operated interest in Oil Mining Leases 60, 61, 62, and 63 as well as related infrastructure and facilities in the Nigerian Agip Oil Company.

The deal also includes a 17% interest in the two-train 10 million tonne-per-annum Brass LNG project in Bayelsa state.

Offshore, Oando gets a 95% operated interest in OML 131 and a 20% non-operated interest in OPL 214.

The assets hold a total of about 213 millions of barrels of oil equivalent of proved plus probable reserves.

"This potential transaction represents a transformational step forward for our company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high-quality growth in reserves and production," said Oando chief executive Pade Durotoye

The transaction is expected to close by mid-2013. Calgary-based Oando has been listed on the Toronto Stock Exchange for about five months. Oando said the deal would provide the company with "a platform for future growth in the region".

The deal is the second billion agreement signed by ConocoPhillips this week. It previously announced the sale of its Algerian business to Indonesia's state-run oil company Pertamina for about $1.75 billion.

The oil giant has sold $11 billion is assets in 2012. The company said last month that it plans to sell its $5 billion stake in Kazakhstan's Kashagan field in the Caspian Sea.

“This intended sale represents further progress on our asset disposition programme,” said Don Wallette, ConocoPhillips' executive vice president of commercial, business development, and corporate planning. “We are pleased that Oando recognises the value of this asset.

Author: nmmin

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