Conoco sells Vietnam units for $1.29 billion

Thu Feb 16, 2012 8:48am EST

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(Reuters) - Oil company ConocoPhillips (COP.N) said it would sell its Vietnam operations to Perenco for $1.29 billion in the latest divestment of assets that has yielded the company more than $20 billion.

Under the agreements signed with a unit of privately owned Perenco, Conoco would sell its three wholly owned subsidiaries that own stakes in two offshore blocks and 16.3 percent interest in the Nam Con Son Pipeline.

The deal is expected to close in the first half of 2012.

Conoco will split into two companies later this year, with one arm focused oil and gas production and the other on refining and market operations.

Conoco had targeted asset sales of $15 billion to $20 billion by the end of 2012.

With the Vietnam operations sale and including the divestment of its stake in Russia's LUKOIL (LKOH.MM) for $9.5 billion, Conoco has now exceeded it target, with proceeds from the sales now at $20.2 billion.

Shares of Conoco slipped 1 percent in premarket trading to $72.73.

(Reporting By Matt Daily, editing by Gerald E. McCormick, Dave Zimmerman)

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