ConocoPhillips to sell Nigerian businesses to Oando Energy for about $1.79 billion

ConocoPhillips yesterday agreed to sell its Nigerian businesses to Oando Energy Resources Inc for about $1.79 billion, as part of the US oil giant's plan to hive off non core assets.

The proposed deal comes a day after the Houston-based company agreed to sell its Algerian business unit to Indonesian state oil firm Pertamina for around $1.75 billion. (See: ConocoPhillips to sell Algerian business unit to Indonesia's Pertamina for $1.75 bn)

Based in Lagos, Nigeria and Toronto Stock Exchange-listed Oando Energy, has paid $435 million in cash to ConocoPhillips when it signed the deal.

The sale includes ConocoPhillips onshore business comprising of a 20-per cent non-operating interest in Phillips Oil Company Nigeria Ltd, which holds oil mining leases 60, 61, 62, and 63 as well as related infrastructure and facilities in the Nigerian Agip Oil Company Ltd Joint Venture and 17 per cent stake in Brass LNG Ltd, which is developing the Brass LNG project, a Greenfield project to develop a two-train, 10 million ton per year, Liquefied Natural Gas facility in Bayelsa State, Nigeria.

The offshore business includes the 95 per cent operating interest held by Conoco Exploration and Production Nigeria in OML 131,  and the 20 per cent non-operating interest held by Phillips Deepwater Exploration Nigeria Ltd in OPL 214.

ConocoPhillips' net production in Nigeria averaged 43,000 barrels of oil equivalent per day from 1 January until 31 October.