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The largest U.S. independent oil producer said on Wednesday it would sell its subsidiary that indirectly owns a 54% stake in the Indonesia Corridor Block Production Sharing Contract (PSC) and a 35% shareholding interest in Transasia Pipeline Company.
ConocoPhillips has doubled down on the U.S. shale with a $9.5 billion purchase of Royal Dutch Shell (LON:RDSa)’s West Texas properties and a $13.3 billion deal for Concho Resources (NYSE:CXO), and already exited Canada’s oil sands, U.S. offshore and British North Sea fields.
ConocoPhillips also said on Wednesday it was exercising its right to purchase up to an additional 10% shareholding interest in Australia Pacific LNG (APLNG) project from Origin Energy for up to $1.645 billion.
ConocoPhillips’ subsidiary currently holds a 37.5% APLNG interest and would own as much as 47.5% upon the closing of the deal, expected in the first quarter of 2022.
The company’s full-year 2020 production from APLNG was about 115,000 barrels of oil equivalent per day (boepd).
RBC Capital Markets analyst Scott Hanold said that ConocoPhillips continues a “proactive A&D (acquisitions and divestitures) strategy to streamline and high grade its global portfolio.”
He added that overall the update is a slight positive for the company but fairly neutral event for the shares.
The company’s shares were down 0.5% at $74.17.
Its Indonesia assets that are being sold produced about 50,000 boepd for the nine months ended Sept. 30, 2021, and had year-end 2020 proved reserves of about 85 million boe.
