US oil firm transfers assets in Vietnam

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VOV News English - 32 month(s) ago 8 readings

ConocoPhillips, the third-largest US oil company, has signed a deal to sell its Vietnam business units for US$1.29 billion to Anglo-French oil and gas explore Perenco SA.

The deal includes ConocoPhillips' three wholly-owned subsidiaries in Vietnam, which hold a 23.25 percent interest in Block 15-1, a 36 percent interest in Block 15-2 and 16.3 percent interest in the Nam Con Son pipeline.

Block 15-1 and Block 15-2 are located in the Cuu Long Basin, in the south-east of southern Ba Ria – Vung Tau Province. The Nam Con Son gas pipeline project is also in Ba Ria – Vung Tau Province.

The sale of Vietnam business units is part of ConocoPhillips' strategy to generate value for shareholders through a continued focus on optimising the portfolio, enhancing returns, strengthening financial flexibility and increasing shareholder distributions, ConocoPhillips said in a statement.

“The sale of Vietnam business units is an important component of our US$15-20 billion asset divestiture programme during 2010-12. ConocoPhillips has conducted business in Vietnam for more than 15 years, and we are pleased that Perenco has recognised the value of these quality assets,” said Al Hirshberg, ConocoPhillips vice president in charge of planning and strategy.

For the 2010-11 period, ConocoPhillips' asset divestiture program yielded US$10.7 billion in proceeds, in addition to US$9.5 billion from LUKOIL share sales, giving a total of US$20.2 billion over this period.

HSBC Securities (USA) acted as financial adviser to ConocoPhillips for the sale, while Perenco SA didn't use any outside financial adviser.

ConocoPhillips reached the equivalent of about 20,000 barrels a day of oil production from Vietnam last year, out of a world-wide daily output of 1.62 million barrels, according to data on its website.

Paris-based Perenco operates in 16 countries across northern Europe, Africa, South America and the Middle East.

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