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ConocoPhillips sells Nigeria upstream business to Oando in USD 1.5bn deal

30th July 2014

ConocoPhillips has completed the transaction with Oando Energy Resources, a subsidiary of Oando PLC, for the sale of its Nigeria upstream business for a total sales price, after customary adjustments, of USD 1.5bn

ConocoPhillips sells Nigeria upstream business to Oando in USD 1.5bn deal
Proceeds from the sale will be available for general corporate purposes, including investments in the company’s higher-margin, organic growth programmes

The sales price is inclusive of USD 550m of deposits received, approximately USD 900m received at closing, plus USD 33m in deferred payments. The sales price less the cash in the business at closing, approximately USD 100m, generated net proceeds of approximately USD 1.4bn, after customary adjustments. The company expects to recognize an after-tax gain of approximately USD 1.1bn for the sale.‪

“We are pleased to complete these transactions with Oando PLC and the Brass LNG Limited shareholders,” said Don Wallette, executive vice president, Commercial, Business Development and Corporate Planning. “We appreciate the long and productive relationship we have had with the government of Nigeria and our partners."

Proceeds from the sale will be available for general corporate purposes, including investments in the company’s higher-margin, organic growth programmes.

ConocoPhillips also announced that it has transferred its 17 per cent shareholder interest in Brass LNG Limited, along with all of its related interests, to the remaining shareholders of Brass LNG Limited. The transfer did not have a material impact to the company’s results. 

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