Calgary explorer to acquire Conoco assets in Nigeria for $1.79 billion
CALGARY -- ConocoPhillips has agreed to sell its businesses in Nigeria for about $1.79 billion to Canada's Oando Energy Resources in a deal that will help the Houston company refocus its activities on North American energy production.
ConocoPhillips is in the midst of a three-year plan repositioning aimed at improving its balance sheet and focusing on more-profitable, less-risky unconventional fields in North Dakota, Texas and other plays throughout North America. The deal with Oando Energy brings ConocoPhillips' asset sales this year to $11 billion.
ConocoPhillips last month sold $5 billion of its stake in Kazakhstan's Kashagan field in the Caspian Sea. The company also spun off its refining arm earlier this year as Phillips 66.
"This intended sale represents further progress on our asset disposition program," said Don Wallette, ConocoPhillips' executive vice president for commercial, business development and corporate planning.
The deal with Oando is expected to close in the first half of next year. The Canadian company will gain ConocoPhillips' assets in Nigeria including interests in oil ventures, a liquefied natural-gas projects and a deepwater exploration program.
Oando, which has been listed on the Toronto Stock Exchange for five months, also gains access to average production of about 43,000 boepd and proved reserves of roughly 213 MMboe.