ConocoPhillips (IW 1000/6) said it has exited a joint venture with Russian firm Lukoil (IW 1000/20) as it restructures to focus on its core businesses.
ConocoPhillips said it sold its indirect 30% interest in NaryanMarNefteGaz and certain related assets to the privately held Lukoil, "as part of its ongoing strategy to reposition its asset base."
Houston-based ConocoPhillips did not disclose the terms of the sale, but said it expects to book an after-tax financial gain of approximately $400 million.
"The sale of this non-core quality asset is an important component of our divestiture program for 2012," said Don Wallette, executive vice president, Commercial, Business Development and Corporate Planning, in a statement.
"We are pleased that Lukoil, the co-owner of NMNG, recognizes the value of this asset."
As part of a larger strategic alliance, ConocoPhillips entered into an agreement with Lukoil in 2004 to create the NMNG joint venture to develop oil and natural gas resources in the northern part of Russia's Timan-Pechora Province.
Copyright Agence France-Presse, 2012
