• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 5 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 4 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 28 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 28 mins SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 5 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 2 hours The Plastics Problem
  • 17 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 18 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 13 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 7 hours Cap and trade: What could Oregon’s carbon policy cost you?
  • 4 mins On the hobby side of things
  • 19 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 11 hours Oil Demand Needs to Halve: Equinor
Alt Text

Can Artificial Intelligence Save The Nuclear Industry?

Nuclear plant decommissioning is a…

Alt Text

President Inslee: An Oil Major’s Nightmare

Jay Inslee, a prominent Democratic…

Jen Alic

Jen Alic

 

More Info

Premium Content

ConocoPhillips to Offload Algerian Assets

ConocoPhillips (NYSE:COP) saw its shares rise 1.7% last week as it moved to unload its Algerian assets for $1.75 billion.

The company is seeking to offload a number of assets over a three-year period to improve its financials and move into less risky areas.

This week, ConocoPhillips announced it would sell its interests in three major onshore Algerian oil fields to Indonesia’s state-owned PT Pertamina.

So far, ConocoPhillips has raised around $9 billion in asset sales, already meeting its goal of between $8 and $10 billion for 2012-2013. The Algerian sale should close by mid next year.

While the juniors are increasingly braving the risky new frontiers, the majors are moving toward more immediately profitable unconventional plays in North America. Hence the Algeria offload.

For ConocoPhillips, we’re talking about three major onshore Algerian oil fields with average production of about 11,000 barrels of oil equivalent per day.

The company is relinquishing some nice shares. To wit: 65% of the Menzel Lejmat North field—the biggest sale—along with 3.7% of the Ourhoud field and 16.9% of the EMK field. It has been operating these fields with Algeria’s state-owned Sonatrach Petroleum Corp. and three foreign partners: Canada’s Talisman Energy Inc. (TLM), US-based Anadarko Petroleum Corp. (APC) and Italy’s Eni SpA (ENI).

The divestiture comes at a time when Algeria is a turning into a hot venue—especially for Europe, which is eyeing the country’s natural gas reserves as a bulwark against Russia.

Algeria has an estimated 321 trillion cubic feet of recoverable shale gas.

ExxonMobil Corp (XOM) is reportedly in talks with the Algerian government over shale, and Royal Dutch Shell Plc (RDSA) has already signed an exploration agreement.

Algeria plans to outpace its neighbors, and is already working out how to import hydraulic fracturing technology to speed things along.

By, Jen Alic of Oilprice.com




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News