Conoco dumps Nigerian business unit

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HOUSTON, Dec. 21 (UPI) -- U.S. supermajor ConocoPhillips announced it reached a deal to sell its Nigerian business unit to a Canadian exploration and production company.

Conoco said it entered into a deal with affiliates of Oando Energy Resources Inc. to sell its Nigerian business unit for $1.79 billion. The deal includes a divestment in oil fields in Nigeria, a power plant and a liquefied natural gas project.

"The proposed sale of its Nigerian business unit is part of ConocoPhillips' plan to increase value for shareholders through portfolio optimization, focused capital investments that deliver growth in production and cash margins, improved returns on capital, and sector-leading shareholder distributions," ConocoPhillips said.

Oando will get access to about 43,000 barrels of oil per day in production and reserve estimates of around 213 million barrels of oil equivalent.

Oando Chief Executive Officer Pade Durotoye said regional experience means the deal is expected to be substantial for his company.

"This potential transaction represents a transformational step forward for our company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production," he said in a statement Friday.