ConocoPhillips sells stake in a Russian joint venture to partner Lukoil

ConocoPhillips yesterday said that it has sold its indirect 30-per cent stake in a Russian joint venture and certain related assets to partner Lukoil as part of the US oil giant's strategy of repositioning its asset base.

ConocoPhillips sold its indirect 30 per cent interest in NaryanMarNefteGaz (NMNG) and certain related assets to Lukoil, Russia's second-largest oil company.

ConocoPhillips had formed the 30:70 NMNG joint venture with and Lukoil holding the majority stake in 2004 to develop oil and natural gas deposits in the South Khylchuyu field in the Timan-Pechora province.

NaryanMarNefteGaz holds seven licenses and five gas-producing fields.

The Houston-based company did not reveal the financial terms of the deal, but said that it expects an after-tax gain of approximately $400 million.

"The sale of this non-core quality asset is an important component of our divestiture program for 2012,'' said Don Wallette, executive vice president, Commercial, Business Development, and Corporate Planning. ''We are pleased that Lukoil, the co-owner of NMNG, recognizes the value of this asset."