ConocoPhillips has completed the transaction with Pertamina for the sale of part of its Algeria business unit for a total sales price of US$1.75bn, which resulted in proceeds of US$1.65bn, including customary adjustments.
ConocoPhillips owns interests in three main oil fields located in Block 405a in Algeria: the Menzel Lejmat North (MLN, operated with a 65% stake, in partnership with Talisman, 35%), Ourhoud (3.7% held by the group, in partnership with Cepsa (39.8%), Sonatrach (36.1%), Anadarko (9.2%), Eni (4.6%), Maersk (4.6%) and Talisman (2%)), and El Merk (EMK, operated by Groupement Berkine; Sonatrach (37.7%), Anadarko (18.1%), ConocoPhillips (16.9%), Eni, Maersk and Talisman ( (9.1% each)). The group will retain its MLN and Ourhoud assets and sell its 19.6% stake in El Merk. In 2012, ConocoPhillips produced an average 12 mb/d of crude oil from this field, 4 mb/d of NGL and 149 Mcf/d (4.2 mcm/d i.e. 1.5 bcm/year), or a total of 40 mboe/d of hydrocarbons.
The company’s divestiture proceeds from 2012 through third-quarter 2013, plus this sale and the recently completed Kashagan sale, have totalled approximately US$12.4bn. These proceeds will be available for general corporate purposes, including investments in the company’s organic growth programs.