ConocoPhillips sells Vietnam operations for $1.3B

ConocoPhillips Co. inked a deal Thursday, Feb. 16, to sell its Vietnam operations to Perenco SA, an Anglo-French oil and gas explorer, for $1.29 billion as part of its plan to shed $15 billion to $20 billion in assets.

The deal, which was expected, includes ConocoPhillips' three wholly owned units that hold its 23.25% interest in Block 15-1, 36% interest in Block 15-2 and 16.3% interest in the Nam Con Son Pipeline. The company expects to close the sale in the first half of the year.

Al Hirshberg, ConocoPhillips' senior vice president of planning and strategy, said in a statement that the sale is an important component of its three-year divestiture plan, which ends this year.

"ConocoPhillips has conducted business in Vietnam for more than 15 years, and we are pleased that Perenco has recognized the value of these quality assets," he said. Privately held, with headquarters in London and Paris, Perenco operates in 16 countries in northern Europe, Africa, South America and the Middle East.

Houston-based ConocoPhillips said its asset divestiture program between 2010 and 2011 yielded $10.7 billion in proceeds on top of $9.5 billion from the sale of shares in Russian oil company OAO Lukoil, bringing in $20.2 billion -- above its goal.

The sale of the Vietnam unit is just one part of ConocoPhillips' plan to create value for shareholders by optimizing its portfolio, enhancing returns, strengthening financial flexibility and boosting shareholder distributions.

Last month ConocoPhillips sold non-operated interests in the gas and oil producing Statfjord field complex to British utility Centrica plc for $223 million and in December shed its interest in three producing U.K. oilfields in the central North Sea to Endeavour International Corp. for $330 million. It also plans to spin off its refining business next quarter into a new company called Phillips 66 to focus on oil and natural gas exploration and production.

On a conference call Jan. 26 with analysts and investors, ConocoPhillips CFO Jeff Sheets said the company is looking to sell two refineries, probably after the spinoff, and to reduce its stakes in its Surmont, Thornberry and Saleski oil sands projects. But he wouldn't comment on the Vietnam sale and denied rumors that the company was looking for a partner for its South Texas' Eagle Ford properties.

The company bought 100,000 acres in North American liquids-rich shale plays in the fourth quarter, bringing its shale acquisitions last year to more than 500,000 acres.

ConocoPhillips spokesman Aftab Ahmed wouldn't comment on whether the company had used outside legal advisers on the sale to Perenco.

HSBC Securities (USA) Inc. advised ConocoPhillips on the sale. Perenco didn't use an outside financial adviser.