ConocoPhillips Announces Intended Sale of Algerian Business Unit
ConocoPhillips (NYSE: COP) today announced it has entered into an
agreement to sell its Algerian business unit for a total of $1.75
billion plus customary adjustments. The proposed sale is subject to
co-venturer preemption rights and Algerian government approval.
ConocoPhillips has entered into an agreement with Pertamina to sell its
wholly-owned subsidiary, ConocoPhillips Algeria Ltd., which holds
interests in three major onshore oil fields located either fully or
partially in Block 405a, Menzel Lejmat North (65 percent, operated),
Ourhoud (3.7 percent, nonoperated), and EMK (16.9 percent, nonoperated).
ConocoPhillips′ 2012 net production from these fields averaged 11
thousand barrels of oil equivalent per day through October, and at Oct.
31, 2012, the net carrying value of ConocoPhillips′ Algerian assets was
approximately $850 million.
'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,? said Don
Wallette, executive vice president, Commercial, Business Development,
and Corporate Planning.
The transaction is anticipated to close by mid-2013. Through Sept. 30,
2012, the company′s 2012-13 asset disposition program has yielded
proceeds of $2.1 billion. Including this transaction, the company has
announced additional asset sales that are expected to generate proceeds
of approximately $7 billion when complete. Funds generated from these
transactions are intended to be used for general corporate purposes.
The proposed sale of its Algerian business unit is part of
ConocoPhillips′ plan to increase value for shareholders through
portfolio optimization, focused capital investments that deliver growth
in production and cash margins, improved returns on capital, and
sector-leading shareholder distributions.
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About ConocoPhillips
Headquartered in Houston, Texas, ConocoPhillips had operations and
activities in 30 countries, $115 billion of assets, and approximately
16,700 employees as of Sept. 30, 2012. Production averaged 1.57 million
BOE per day for the nine months ended Sept. 30, 2012, and proved
reserves were 8.4 billion BOE as of Dec. 31, 2011. For more information,
go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE 'SAFE HARBOR' PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
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'target' and other similar words. However, the absence of these words
does not mean that the statements are not forward-looking. Where, in any
forward-looking statement, the company expresses an expectation or
belief as to future results, such expectation or belief is expressed in
good faith and believed to have a reasonable basis. However, there can
be no assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected by a
variety of risks and other matters including, but not limited to,
changes in commodity prices; changes in expected levels of oil and gas
reserves or production; operating hazards, drilling risks, unsuccessful
exploratory activities; difficulties in developing new products and
manufacturing processes; unexpected cost increases; international
monetary conditions; potential liability for remedial actions under
existing or future environmental regulations; potential liability
resulting from pending or future litigation; limited access to capital
or significantly higher cost of capital related to illiquidity or
uncertainty in the domestic or international financial markets; and
general domestic and international economic and political conditions; as
well as changes in tax, environmental and other laws applicable to our
business. Other factors that could cause actual results to differ
materially from those described in the forward-looking statements
include other economic, business, competitive and/or regulatory factors
affecting our business generally as set forth in our filings with the
Securities and Exchange Commission. Unless legally required,
ConocoPhillips undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
ConocoPhillips
John McLemore, 281-293-1247 (media)
john.l.mclemore@conocophillips.com
or
Aftab
Ahmed, 281-293-4138 (media)
aftab.ahmed@conocophillips.com
or
Vladimir
R. dela Cruz, 212-207-1996 (investors)
v.r.delacruz@conocophillips.com
