ConocoPhillips (COP - Get Report) slipped Monday after the company announced an agreement to sell the subsidiaries that hold its Australia-West assets and operations to Adelaide-based Santos (STOSF) for $1.39 billion.
The company said it also will receive a payment of $75 million upon final investment decision of the Barossa development project.
The assets include the company's 37.5% interest in the Barossa project and Caldita Field, its 56.9% interest in the Darwin LNG facility and Bayu-Undan Field, its 40% interest in the Poseidon Field, and its 50% interest in the Athena Field.
ConocoPhillips said it will retain its 37.5% interest in the Australia Pacific LNG project and operatorship of that project's LNG facility.
"We are pleased that Santos recognizes the value of the existing business as well as the opportunity to develop Barossa and thereby continue Darwin LNG's operations for another 20-plus years," Matt Fox, executive vice president and chief operating officer of ConocoPhillips, said in a press release."While we believe the Darwin LNG backfill project remains among the lower cost of supply options for new global LNG supply, this transaction allows us to allocate capital to other projects that we believe will generate the highest long-term value to ConocoPhillips,"
The shares were down 0.6% to $56.09 in trading Monday.