ConocoPhillips to sell Algerian business to Indonesian oil corp

ConocoPhillips has agreed to sell its Algeria business for about $1.75 billion to Indonesia’s state-owned oil company Pertamina, the Houston-based corporation announced Tuesday.

ConocoPhillips Algeria Ltd. has interest in three onshore fields with net production of about 11,000 barrels of oil equivalent per day this year. The net carrying value is about $850 million, the company said.

The move is ConocoPhillips latest effort to slim down and streamline its operations, an effort that has yielded$2.1 billion this year. Once closed, this sale and other announced transactions would yield another $7 billion, the company noted.

The company also has put its Nigeria assets on the block, though a sale hasn’t been announced yet.

Included in the Algeria sale are ConocoPhillips 65 percent stake in Menzel Lejmat North, its 16.9 percent interest in EMK, and its 3.7 percent interest in Ourhoud. All of the fields are located in Block 405a in eastern Algeria. ConocoPhillips is operator of the Menzel Lejmat North project.

The deal is expected to close by mid-2013, subject to approval by the Algerian government and business partners in the affected fields. The final value of the deal will include customary closing adjustments.

In a written statement, Don Wallette, executive vice president of commercial, business development and corporate planning said, “The sale of our Algerian business unit represents another important step in transforming ConocoPhillips’ asset base, and advances the strategic interests of both Pertamina and ConocoPhillips.”