ConocoPhillips to sell Indonesia Assets for $1.355B, adding to APLNG stake

ConocoPhillips announced two transactions intended to core up the important Asia-Pacific segment of its diverse global portfolio. The company announced it has entered into an agreement to sell the subsidiary that indirectly owns the company's 54% interest in the Indonesia Corridor Block Production Sharing Contract and a 35% shareholding interest in the Transasia Pipeline Company. The sale to MedcoEnergi for $1.355B is subject to customary adjustments and is expected to close in early 2022, subject to certain conditions precedent. The Indonesia assets being sold produced approximately 50 thousand barrels of oil equivalent per day, MBOED, for the nine months ended Sept. 30, 2021, and had year-end 2020 proved reserves of approximately 85 million barrels of oil equivalent. The effective date for the transaction will be Jan. 1. In addition, through its Australian subsidiary, the company announced that it has notified Origin Energy that it is exercising its preemption right to purchase up to an additional 10% shareholding interest in Australia Pacific LNG,APLNG, from Origin Energy for up to $1.645B which will be funded from cash on the balance sheet, subject to customary adjustments. The ConocoPhillips subsidiary currently holds a 37.5% APLNG shareholding interest and would own 47.5% of APLNG upon closing if the other relevant APLNG shareholder does not exercise its preemption rights. The transaction is expected to close in the first quarter of 2022 and is subject to Australian government approval. ConocoPhillips' full-year 2020 production from APLNG was approximately 115 MBOED, and full-year 2021 distributions are expected to be approximately $750 million, excluding distributions resulting from any additional shareholding interest arising from preemption. The effective date of the transaction will be July 1, 2020.