ConocoPhillips said it will sell a 30 percent interest in a joint venture to partner LUKoil, nearly exiting Russia after more than two decades.
Conoco is left only with half of the Polar Lights joint venture with Russia's top oil producer, Rosneft, which contributed just 6 million barrels oil equivalent per day to its production in 2011.
Conoco is likely to get out of that venture too, Morningstar analyst Allen Good said, but Conoco declined to comment on the future of that project.
"The company has an ongoing disposition program of non-strategic assets, and we continue to evaluate our portfolio on an ongoing basis," Conoco spokesman John McLemore said in an e-mail.
Conoco last year divested its stake in LUKoil, Russia's No.2 crude producer, for $9.5 billion.
The Houston-based company said on Wednesday it was selling its indirect stake in the NaryanMarNefteGaz joint venture with LUKoil as part of its asset sale program.
Conoco has sold more than $20 billion in assets this year, topping a target set for sales of $15 billion to $20 billion.
The firm said it expects to recognize an after-tax gain of about $400 million from the sale.
The NaryanMarNefteGaz venture was formed in 2004 to develop oil and natural gas resources in Timan-Pechora province, on Russia's northern coast. It holds seven licenses and is producing from five fields.
Russian assets are no longer as strategic to Conoco, as the company is looking to focus on the United States, Good said. Russia is seeing a decline in oil output in its West Siberian fields.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.