ConocoPhillips Announces Further Progress on Asset Disposition Program with Intended Sale of Nigerian Business Unit
ConocoPhillips (NYSE: COP) today announced it has entered into
agreements to sell its Nigerian business unit for a total of $1.79
billion plus customary adjustments.
ConocoPhillips has entered into agreements with affiliates of Oando PLC
to sell its Nigerian business unit. This includes two offshore
properties consisting of a 95 percent operated interest in OML 131
(Chota Field) and 20 percent nonoperated interest in OPL 214 (Uge
Field), as well as a 20 percent nonoperated interest in onshore OMLs
60-63 (NAOC joint venture), a 20 percent nonoperated interest in the
Kwale-Okpai Independent Power Plant and a 17 percent nonoperated
interest in the Brass LNG project. ConocoPhillips′ 2012 net production
in Nigeria averaged 43 thousand barrels of oil equivalent per day
through October, comprising approximately 60 percent natural gas and 40
percent liquids. At Oct. 31, 2012, the net carrying value of
ConocoPhillips′ Nigerian assets was approximately $600 million.
'This intended sale represents further progress on our asset disposition
program,? said Don Wallette, executive vice president, Commercial,
Business Development, and Corporate Planning. 'We are pleased that Oando
PLC recognizes the value of this asset.?
The transaction is anticipated to close by mid-2013, following
appropriate consultations with stakeholders. Including this transaction,
the company has announced total asset sales of approximately $11 billion
during 2012. Proceeds from these divestitures will allow the company to
continue executing its existing growth programs and capture new
opportunities for the future.
The proposed sale of its Nigerian 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.
--- # # # ---
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
results of operations, business strategies, and other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as 'anticipate,'
'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,'
'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,'
'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'effort,'
'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 (media), 281-293-1247
john.l.mclemore@conocophillips.com
or
Aftab
Ahmed (media), 281-293-4138
aftab.ahmed@conocophillips.com
or
Vladimir
R. dela Cruz (investors), 212-207-1996
v.r.delacruz@conocophillips.com
