ConocoPhillips divests Indonesia assets for $1.4 billion

JAKARTA, December 8, 2021 – ConocoPhillips has agreed to sell its remaining Indonesia assets to local oil and gas player Medco Energi for $1.4 billion, the American multinational announced on Wednesday.

The transaction includes ConocoPhillips 54% interest in the Indonesia Corridor licence and a 35% share in the Transasia Pipeline Company.

The sale is expected to close in early 2022 and is subject to approvals.

The sold assets represent production of 50,000 boepd, with proven reserves of around 85 million boe.

The American company also announced plans to purchase an additional 10% shares in Australia Pacific LNG from Origin Energy for up to USD 1.65 billion through pre-emption rights.

The deal would boost ConocoPhillips’ shares in the Eastern Australian LNG producer to 47.5%.

The second deal is expected to close in Q1 2022 and is subject to approvals.

ConocoPhillips’ share of LNG distribution with the company is expected to be around USD 750 million in 2021, excluding distribution resulting from any rise in shares due to pre-emption agreements.

“The Asia Pacific region plays an important role in our diversification advantage as an independent E&P and these two transactions enhance that advantage by lowering our aggregate decline rate and diversifying our product mix,” said Ryan Lance, chairman and CEO for ConocoPhillips.

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