Conoco exits Indonesia

US major ConocoPhillips on December 8 announced the sale of its assets in Indonesia to local energy company MedcoEnergi for $1.355bn.

The company announced it had entered into an agreement to sell the subsidiary that indirectly owns the company’s 54% interest in the Indonesia Corridor Block production sharing contract (PSC) and a 35% shareholding interest in the Transasia Pipeline Company. The sale is expected to close in early 2022.

The Corridor PSC has two producing oil fields and seven producing gas fields located onshore South Sumatra. The majority of production is gas sold under long-term contracts to Indonesian and Singapore counterparties. Through Transasia, MedcoEnergi will own a minority interest in the gas pipeline network supplying Central Sumatra, Batam, and Singapore customers.

Meanwhile, ConocoPhillips has exercised its right to buy up to an additional 10% stake in Australia Pacific LNG (APLNG) from Origin Energy for up to $1.645bn, pre-empting an offer from private equity firm EIG Partners for that stake.  The other shareholder in APLNG, Chinese state-run Sinopec, has until December 17 to exercise its respective pro-rata pre-emption rights.

APLNG, which is located in Gladstone in Queensland, has a nameplate capacity of 9mn metric tons/year and holds a leading acreage position spanning the prolific Surat and Bowen basins.