ConocoPhillips To Sell Vietnamese Business Unit To Perenco

To acquire 23.25% WI in Block 15-1, 36% WI in Block 15-2, and 16.3% WI in Nam Con Son Pipeline in Vietnam.

ConocoPhillips, Houston, (NYSE: COP) plans to sell its Vietnam business unit to London-based Perenco SA for a total of US$1.29 billion plus customary working capital adjustments.

A subsidiary of Perenco will acquire three ConocoPhillips subsidiaries that separately hold 23.25% participating interest in Block 15-1, 36% participating interest in Block 15-2, and 16.3% participating interest in Nam Con Son Pipeline.

The sale of the Vietnam business unit is just one part of ConocoPhillips’ plan to create value for shareholders through a continued focus on optimizing the portfolio, enhancing returns, strengthening financial flexibility and increasing shareholder distributions.

ConocoPhillips senior vice president, planning and strategy, Al Hirshberg says, “The sale of our Vietnam business unit is an important component of our $15- to $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.”

For 2010-2011, ConocoPhillips’ asset divestiture program yielded $10.7 billion in proceeds, in addition to $9.5 billion from Lukoil share sales, giving total dispositions of $20.2 billion over this period.

The transaction is anticipated to close in the first half of 2012.