ConocoPhillips to sell Algerian business unit to Indonesia's Pertamina for $1.75 bn

US oil giant ConocoPhillips yesterday agreed to sell its Algerian business unit to Indonesian state oil firm Pertamina for around $1.75 billion.

The Houston-based company is selling its wholly-owned Algerian subsidiary, ConocoPhillips Algeria Ltd, which holds interests in three major onshore oil fields located in Block 405a.

ConocoPhillips Algeria is the operator with a 65-per cent interest in Menzel Lejmat North, 3.7 per cent non-operating interest in Ourhoud, and 16.9-per cent non-operating interest in EMK.

ConocoPhillips said that net production from these fields in 2012 averaged 11 thousand barrels of oil equivalent per day and net carrying value of these assets was approximately $850 million.

The proposed sale, which is expected to close by mid-2013, is subject to co-partner pre-emption rights and Algerian government approval. Algerian state-owned oil company Sonatrach is the partner in this Block, and has the first right of refusal.

''The acquisition is expected to boost Pertamina's oil output significantly from 23,000 barrels of crude oil per day to 35,000 barrels of oil per day in 2013 as the EMK field is projected to begin its production,'' Pertamina president director, Karen Agustiawan said in a statement.