FILE PHOTO: The logo for ConocoPhillips is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid/File Photo/File Photo
December 8, 2021
(Reuters) -U.S. oil and gas producer ConocoPhillips will sell its stake in some of its Indonesian assets for $1.355 billion to domestic energy company MedcoEnergi, as it focuses on shale with two multi-billion dollar deals this year.
The largest U.S. independent oil producer said on Wednesday it would sell its subsidiary that indirectly owns a 54% stake in the Indonesia Corridor Block Production Sharing Contract (PSC) and a 35% shareholding interest in Transasia Pipeline Company.
ConocoPhillips has doubled down on the U.S. shale with a $9.5 billion purchase of Royal Dutch Shell’s West Texas properties and a $13.3 billion deal for Concho Resources, and already exited Canada’s oil sands, U.S. offshore and British North Sea fields.
ConocoPhillips also said on Wednesday it was exercising its right to purchase up to an additional 10% shareholding interest in Australia Pacific LNG (APLNG) project from Origin Energy for up to $1.645 billion.
ConocoPhillips’ subsidiary currently holds a 37.5% APLNG interest and would own as much as 47.5% upon the closing of the deal, expected in the first quarter of 2022.
The company’s full-year 2020 production from APLNG was about 115,000 barrels of oil equivalent per day (boepd).
RBC Capital Markets analyst Scott Hanold said that ConocoPhillips continues a “proactive A&D (acquisitions and divestitures) strategy to streamline and high grade its global portfolio.”
He added that overall the update is a slight positive for the company but fairly neutral event for the shares.
The company’s shares were down 0.5% at $74.17.
Its Indonesia assets that are being sold produced about 50,000 boepd for the nine months ended Sept. 30, 2021, and had year-end 2020 proved reserves of about 85 million boe.
(Reporting by Arunima Kumar in Bengaluru; Editing by Shinjini Ganguli)
