Houston, Texas-based oil and gas major ConocoPhillips (NYSE: COP) and Sinopec Exploration Southern Co., a subsidiary of Sinopec Group, signed an agreement to focus on shale gas exploration and production research for the Qijiang block in the Sichuan Basin.
The research project covers an area of approximately 3,917 square kilometers. The research will be carried out over a period of two years.
COP has entered into a research agreement with Sinopec even as the company continues with its Asset Disposition Program. Last week, ConocoPhillips had announced that it entered into agreements to sell its Nigerian business unit for a total of $1.79 billion plus customary adjustments.
COP signed agreements with affiliates of Oando PLC to sell the Nigerian business units. COP’s Nigerian business includes a 95% operated interest in OML 131, 20% nonoperated interest in OPL 214, 20% nonoperated interest the Kwale-Okpai Independent Power Plant and a 17% nonoperated interest in the Brass LNG project. The sale is expected to be completed by mid-2013.
Last week, COP also announced the sale of its Algerian business unit. The company entered into an agreement with Pertamina to sell its wholly-owned subsidiary, ConocoPhillips Algeria Ltd., for $1.75 billion plus customary adjustments.
Don Wallette, Executive Vice President, Commercial, Business Development and Corporate Planning at ConocoPhillips, said that the sale of Algerian business unit represents another important step in transforming COP’s asset base and advances the strategic interests of both Pertamina and COP.
The sale of the Algerian business unit is also expected to be completed by mid-2013.
COP shares had ended marginally lower in the previous trading session. The stock closed 0.29% lower at $58.44.
Year-to-date, COP shares have fallen 19.80%, compared to a gain of 13.43% for the S&P 500 in the same period.
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