ConocoPhillips sells Australia assets for $1.4 billion

ConocoPhillips said it will sell most of its Australian business to the Australian company Santos for $ 1.4 billion as Houston oil and gas producers continue to shift their focus to North America.

This sale includes ConocoPhillips' major ownership of the Darwin Liquefied Natural Gas Facility, interest in the Barossa gas development project, and stakes in Caldita, Bayu-Undan, Poseidon and Athena.

However, ConocoPhillips will maintain its leadership in Australia's Pacific LNG project launched online in 2016 through partnerships with Australia's Origin Energy and China's Sinopec.

“We are very proud to have worked in Australia for the last 20 years. We are pleased that Santos continues to operate Darwin LNG for more than 20 years, recognizing the value of its existing business and the opportunity to develop it directly, ”said Matt Fox, Chief Operating Officer of ConocoPhillips.

The contract includes about 50,000 barrels of oil equivalents (mostly produced from natural gas) and 39 million barrels of oil equivalents every day.

ConocoPhillips raised dividends by nearly 40{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} due to weak oil prices

ConocoPhillips said last week it would raise dividends to investors by nearly 40{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} at an annual cost of about $ 500 million.

In April, ConocoPhillips said it would sell North Sea's UK-based assets to London-based Chrysaor for $ 2.7 billion. At the end of last year, ConocoPhillips sold its assets in East Timor.

David Low, senior analyst at energy research firm Wood Woodkenzie, said the new Australian deal fits into ConocoPhillips' "recent strategy."

"We now expect US companies to relocate this capital to non-traditional Alaskan locations in North America," Low said. "ConocoPhillips already allocates about 70{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of its capital to US operations, so after a recent East Timor Sunrise and UK investment, this sales is consistent with our strategy to reduce international exposure and increase North American production."


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