US-based ConocoPhilips sells Nigerian unit in $1.8bn deal

Oil rig off the Lagos coast

US oil major ConocoPhillips (NYSE:COP) said it would dispose of its Nigerian business unit to local energy group Oando Plc in a deal worth USD1.79bn (EUR1.4bn), as part of its asset sale programme.

With this move, ConocoPhillips brings to some USD11bn the total value of the operations sold during this year, it said, adding it would use the funds to finance its ongoing growth strategy, as well as to capture future opportunities.

The company is looking to create value for shareholders by optimising its portfolio with focus on capital investments that generate production and cash margins growth and higher returns on capital, it explained.

Its Nigerian subsidiary had a net carrying value of around USD600m as at 31 October 2012.

The deal is seen to wrap up by mid-2013, subject to consultation with shareholders.
As of 30 September 2012, ConocoPhillips had presence in 30 countries, USD115bn worth of assets and about 16,700 employees.

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