ConocoPhillips sells Algeria business unit

US-based energy firm ConocoPhillips has completed the previously announced sale of its Algeria business unit to Pertamina in a transaction worth $1.75bn.

The sale of wholly-owned subsidiary ConocoPhillips Algeria is part of the company’s plan to increase value for shareholders and improve capital returns and shareholder distributions.

The business unit has interests in three onshore oil fields located either fully or partially in block 405a: Menzel Lejmat North (65%, operated), Ourhoud (3.7%, non-operated), and EMK (16.9%, non-operated).

During 2012, ConocoPhillips’ net production from the fields averaged 11,000 barrels of oil equivalent a day through October. At 31 October, the net carrying value of its Algerian assets was approximately $850m.

ConocoPhillips commercial, business development and corporate planning executive vice president Don Wallette said: "We appreciate the long and productive relationship we have had with the government of Algeria and with Sonatrach, the national oil company of Algeria."

Including the latest sale and the recently completed Kashagan sale, ConocoPhillips’ sales proceeds from 2012 through third-quarter 2013 have totalled approximately $12.4bn.

The proceeds will be available for general corporate purposes, including investments in the company’s organic growth programmes.

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Image: Headquarters of ConocoPhillips in Houston, Texas. Photo: courtesy of ConocoPhillips Company.