ConocoPhillips completed the sale of the subsidiary that indirectly owns its 54% interest in the Indonesia Corridor Block Production Sharing Contract (PSC) and a 35% shareholding interest in the Transasia Pipeline Company to MedcoEnergi for $1.355 billion, with an effective date of Jan. 1, 2021.
After customary closing adjustments, net cash from the sale is approximately $0.8 billion, which accounts for $0.1 billion restricted cash transferred to MedcoEnergi at closing.
“We are proud of our half-century history in Indonesia and pleased that MedcoEnergi recognizes the value of this business,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “This disposition is part of our ongoing effort to focus our investments across low cost of supply opportunities.”
The assets sold produced 51 thousand barrels of oil equivalent per day (MBOED) during 2021 and had year-end 2021 proved reserves of approximately 70 million barrels of oil equivalent.