(Reuters) - ConocoPhillips (COP.N) struck a deal to sell its Algerian business unit to Indonesian state oil firm Pertamina for around $1.75 billion.
The U.S. oil and natural gas company said Tuesday that the unit it is selling, ConocoPhillips Algeria Ltd, holds interests in three major onshore oil fields with average net production of 11,000 barrels of oil equivalent per day. ConocoPhillips said the net carrying value of the Algerian assets was about $850 million at the end of October.
The proposed sale is subject to pre-emption rights by ConocoPhillips’ partners in the fields and to Algerian government approval.
ConocoPhillips has been shedding overseas assets to cut debt and increase its investment in lower-cost domestic shale oil and gas. It has already beaten its target of asset sales worth $20 billion by the end of 2012, including the sale of its stake in Lukoil (LKOH.MM), Russia’s second-biggest oil producer.
The company expects the deal to be completed by mid-2013.
Shares of ConocoPhillips closed at $58.28 on the New York Stock Exchange on Monday.
Reporting By Michael Erman; Editing by Gerald E. McCormick