ConocoPhillips Announces Agreement to Sell Interests in Australia-West for $1.39 Billion
October 13 2019 - 5:32PM
Business Wire
ConocoPhillips (NYSE: COP) today announced it has entered into
an agreement to sell the subsidiaries that hold its Australia-West
assets and operations to Santos for $1.39 billion, plus customary
closing adjustments. In addition, the company will also receive a
payment of $75 million upon final investment decision of the
Barossa development project. The subsidiaries hold the company’s
37.5 percent interest in the Barossa project and Caldita Field, its
56.9 percent interest in the Darwin LNG facility and Bayu-Undan
Field, its 40 percent interest in the Poseidon Field, and its 50
percent interest in the Athena Field. ConocoPhillips will retain
its 37.5 percent interest in the Australia Pacific LNG project and
operatorship of that project’s LNG facility. Proceeds from this
transaction will be used for general corporate purposes.
“We are extremely proud of our work in Australia-West over the
last 20 years. We are pleased that Santos recognizes the value of
the existing business as well as the opportunity to develop Barossa
and thereby continue Darwin LNG’s operations for another 20-plus
years,” said Matt Fox, executive vice president and chief operating
officer. “While we believe the Darwin LNG backfill project remains
among the lower cost of supply options for new global LNG supply,
this transaction allows us to allocate capital to other projects
that we believe will generate the highest long-term value to
ConocoPhillips.”
Production associated with the assets being sold was
approximately 50 thousand barrels of oil equivalent per day (MBOED)
for the first half of 2019 and proved reserves were approximately
39 million barrels of oil equivalent (BOE) at year-end 2018.
The effective date for the transaction will be Jan. 1, 2019. The
transaction is subject to regulatory approval and other specific
conditions precedent. The sale is expected to be completed in the
first quarter of 2020.
The company has posted an investor table that summarizes the
impact of this transaction. The table can be accessed at
www.conocophillips.com/investor/
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About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P
company based on production and proved reserves. Headquartered in
Houston, Texas, ConocoPhillips had operations and activities in 17
countries, $71 billion of total assets, and approximately 10,900
employees as of June 30, 2019. Production excluding Libya averaged
1,303 MBOED for the six months ended June 30, 2019, and proved
reserves were 5.3 BBOE as of Dec. 31, 2018. For more information,
go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES
OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements as defined
under the federal securities laws. Forward-looking statements
relate to future events and anticipated results of operations,
business strategies, and other aspects of our operations or
operating results. Words and phrases such as "anticipate,"
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"may," "plan," "potential," "predict," “seek,” "should," "will,"
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"guidance," "outlook," "effort," "target" and other similar words
can be used to identify forward-looking statements. However, the
absence of these words does not mean that the statements are not
forward-looking. Where, in any forward-looking statement, the
company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to be reasonable at the time such forward-looking statement is
made. However, these statements are not guarantees of future
performance and involve certain risks, uncertainties and other
factors beyond our control. Therefore, actual outcomes and results
may differ materially from what is expressed or forecast in the
forward-looking statements. Factors that could cause actual results
or events to differ materially from what is presented include
changes in commodity prices; changes in expected levels of oil and
gas reserves or production; operating hazards, drilling risks,
unsuccessful exploratory activities; difficulties in developing new
products and manufacturing processes; unexpected cost increases or
technical difficulties in constructing, maintaining, or modifying
company facilities; legislative and regulatory initiatives
addressing global climate change or other environmental concerns;
investment in and development of competing or alternative energy
sources; disruptions or interruptions impacting the transportation
for our oil and gas production; international monetary conditions
and exchange rate fluctuations; changes in international trade
relationships, including the imposition of trade restrictions or
tariffs on any materials or products (such as aluminum and steel)
used in the operation of our business; our ability to collect
payments when due under our settlement agreement with PDVSA; our
ability to collect payments from the government of Venezuela as
ordered by the ICSID; our ability to liquidate the common stock
issued to us by Cenovus Energy Inc. at prices we deem acceptable,
or at all; our ability to complete our announced dispositions or
acquisitions on the timeline currently anticipated, if at all; the
possibility that regulatory approvals for our announced
dispositions or acquisitions will not be received on a timely
basis, if at all, or that such approvals may require modification
to the terms of our announced dispositions, acquisitions or our
remaining business; business disruptions during or following our
announced dispositions or acquisitions, including the diversion of
management time and attention; the ability to deploy net proceeds
from our announced dispositions in the manner and timeframe we
currently anticipate, if at all; potential liability for remedial
actions under existing or future environmental regulations;
potential liability resulting from pending or future litigation;
the impact of competition and consolidation in the oil and gas
industry; limited access to capital or significantly higher cost of
capital related to illiquidity or uncertainty in the domestic or
international financial markets; general domestic and international
economic and political conditions; changes in tax, environmental
and other laws applicable to our business; and disruptions
resulting from extraordinary weather events, civil unrest, war,
terrorism or a cyber attack; and other economic, business,
competitive and/or regulatory factors affecting our business
generally as set forth in our filings with the Securities and
Exchange Commission. Unless legally required, ConocoPhillips
expressly disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191013005038/en/
Daren Beaudo (media) 281-293-2073
daren.beaudo@conocophillips.com
Investor Relations 281-293-5000
investor.relations@conocophillips.com
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