ConocoPhillips to sell Vietnam unit for $1.29 billion

      (Photo for illustration)

ConocoPhillips announced today that the US petroleum corporation has entered into an agreement to sell its Vietnam business unit to Perenco of France for a total of $1.29 billion plus customary working capital adjustments. 

The announcement, dated Feb. 16 from Houston, Texas, said the sale was “part of its ongoing strategy to create shareholder value.”

ConocoPhillips said it has entered into definitive agreements with a subsidiary of Perenco to sell its three wholly-owned subsidiaries that separately hold its 23.25 percent participating interest in Block 15-1, 36 percent participating interest in Block 15-2, and 16.3 percent participating interest in Nam Con Son Pipeline.

The pipeline system transports natural gas from the Nam Con Son Basin off southern Vietnam to Ba Ria-Vung Tau Province, also in the south.

The transaction is anticipated to close in the first half of 2012, the American company said.

“The sale of our Vietnam business unit is an important component of our $15-20 billion 2010-2012 asset divestiture program. 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,” Al Hirshberg, senior vice president, Planning and Strategy, ConocoPhillips, said in the announcement.

According to the company, the sale of the Vietnam business unit is just one part of its plan “to create value for shareholders through a continued focus on optimizing the portfolio, enhancing returns, strengthening financial flexibility and increasing shareholder distributions.”

The Houston-headquartered company says for 2010-2011, its asset divestiture program yielded $10.7 billion in proceeds, in addition to $9.5 billion from LUKOIL share sales, giving total dispositions of $20.2 billion over this period.

By Tuong Thuy

Other news

Most view

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) rose 21.12 points on July 18 (Photo: VNA)

VN-Index rises over 21 points

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) rose 21.12 points on July 18, with 223.9 million shares worth over 4.9 trillion VND (211 million USD) traded. 

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

185 leading domestic & in't enterprises join in VN ETE 2018

The Vietnam Exhibition of Electrical Technology and Equipment (Vietnam ETE 2018) and the Exhibition of Products, Technologies for Energy Saving and Green Power (ENERTEC EXPO 2018) yesterday kicked off in HCMC’s Saigon Exhibition Convention Center in district 7.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

SAS profits VND 118bln

The Southern Airports Service Joint Stock Company (Sasco) which is listed under code SAS on the Unlisted Public Company Market (UPCoM), announced its second quarter’s financial report with net revenue at VND 634.5billion, an increase of 14 percent compared to last year.