ConocoPhillips, the leading U.S. oil company, has agreed to sell its all assets in Vietnam to Perenco SA – a French oil and gas company, for USD1.29 billion in order to withdraw the operation from the country after 15 years.

According to Bloomberg News, in a statement on Feb 16th, ConocoPhillips said the sale of assets in Vietnam is a part of company’s efforts to cut off ineffective businesses and to boost earnings. As plan, the transaction is expected to finish in the first half of 2012.

Currently, ConocoPhillips is in the progress to sell USD15-20 billion of assets in three years. By the end of 2012, money from this plan will be used for share repurchases and invest in future growth. In last two years, ConocoPhillips has sold completly USD10.7 billion in asset as plan.

Beside that, ConocoPhillips also has plan separate the oil refinery section in the second quarter to concentrate on exploration and extraction of gas and oil. The new company will be called Phillips 66.

Pavel Molchanov, a analyst with Raymond James & Associates Inc in Houston said that assets from unit in Vietnam is not meaningful for the company.

According to data released on its website showing that ConocoPhillips exploited about 20,000 barrels a day of oil production from Vietnam in 2011, while daily output from other units in worldwide was 1.62 million barrels.

The assets ConocoPhillips transferred for Perenco include stakes of two areas exploring off the coast of Vietnam and 16.3 percent of stakes from a pipeline.

Perenco, Paris based energy company, produces oil and gas in Brazil, Peru, Iraq, Australia and North Sea. While ConocoPhillips is a third largest US oil company after sau Exxon Mobil and Chevron.

HSBC Securities Inc (USA will act as financial adviser to ConocoPhillips on transaction in Vietnam.
 

Source: Xangdau.net