ConocoPhillips to sell Vietnam assets to Perenco for $1.29 billion

ConocoPhillips, the third-largest US oil company, yesterday said that it will sell its Vietnam assets to French oil and natural gas company Perenco SA, for $1.29 billion.

The Houston-based oil giant had targeted divesting non-core assets worth $15 billion to $20 billion by the end of 2012 in order to fund share repurchases and position itself for future growth.

The company has already sold assets worth $10.7 billion during 2010 and 2011, and received $9.5 billion by selling its shares in Lukoil, taking its total divestures to $20.2 billion.

ConocoPhillips, which has been operating in Vietnam for more than 15 years, is selling its three wholly-owned subsidiaries that separately hold 23.25 per cent stake in Block 15-1, 36 per cent stake in Block 15-2, and 16.3 per cent stake in Nam Con Son Pipeline.

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," said Al Hirshberg, senior vice president, planning and strategy at ConocoPhillips.

Its Vietnam operations yielded about 20,000 barrels a day of oil in 2011 out of global daily output of 1.62 million barrels, according to data on the company's website.