ConocoPhillips has announced it has completed the transaction with Oando Energy Resources (OER), a subsidiary of Oando PLC, for the sale of its Nigeria upstream business for a total sales price, after customary adjustments, of $1.5 billion.
The sales price is inclusive of $550 million of deposits received, approximately $900 million received at closing, plus $33 million in deferred payments. The sales price less the cash in the business at closing, approximately $100 million, generated net proceeds of approximately $1.4 billion, after customary adjustments.
The company expects to recognize an after-tax gain of approximately $1.1 billion for the sale.
ConocoPhillips also announced that it has transferred its 17 percent shareholder interest in Brass LNG Limited, along with all of its related interests, to the remaining shareholders of Brass LNG Limited.
The transfer did not have a material impact to the company’s results.
“We are pleased to complete these transactions with Oando PLC and the Brass LNG Limited shareholders,” said Don Wallette , executive vice president, Commercial, Business Development and Corporate Planning.
“We appreciate the long and productive relationship we have had with the government of Nigeria and our partners.”
Related: Oando: ConocoPhillips transaction to close on July 31
Proceeds from the sale will be available for general corporate purposes, including investments in the company’s higher-margin, organic growth programs.