ConocoPhillips is to sell its Nigerian business unit for a total of US $1.79 Bn after entering into agreements with affiliates of Oando Plc, including shares in two deepwater blocks.

The sale includes two offshore properties consisting of a 95% operated interest in OML 131 (containing the Chota field in 1,062 m of water) and a 20% non-operated interest in OPL 214 (the Uge field in 1,350 m of water), as well as a 20% non-operated interest in onshore OMLs 60-63 (NAOC joint venture), a 20% non-operated interest in the Kwale-Okpai Independent Power Plant and a 17% non-operated interest in the Brass LNG project.

The company’s 2012 net production in Nigeria averaged 43,000 boe/d through October, comprising approximately 60% natural gas and 40% liquids. On 31 October, 2012 the net carrying value of ConocoPhillips’ Nigerian assets was approximately $600m, it said.

The transaction is anticipated to close by mid-2013, following appropriate consultations with stakeholders. Including this transaction, the company announced total asset sales of approximately $11 Bn during 2012. The proposed sale of its Nigerian business unit is part of ConocoPhillips’ plan to increase value for shareholders through portfolio optimization, focused capital investments that deliver growth in production and cash margins, improved returns on capital, and sector-leading shareholder distributions.