ConocoPhillips to sell Indonesian E&P assets, paper says

US oil giant ConocoPhillips is planning to sell US$ 2 billion exploration and production assets in Indonesia and North America and another $2 billion in refinery assets in a bid to streamline the company?s operation and to focus on large oil and gas projects that can generate sizable revenue streams, The Wall Street Journal reported Monday.

The US daily reported that the move is one of the company?s strategies to improve its return on capital employed to 12 to 14 percent over the next several years along with 25 percent reduction in capital spending and to increase post-merger annual cost savings target to $1.25 billion from $750 million.

Conoco merged with Phillips earlier this year. Prior to merging, Conoco acquired Gulf Canada Resources, which in turn controlled Gulf Indonesia Resources, making ConocoPhillips an Indonesian major gas player.

ConocoPhillips Indonesian crown assets are South Natuna Block B giant gas block offshore West Natuna and Corridor Block in South Sumatra. The company also controls more than a dozen other Indonesian E&P assets. The company exports its natural gas production through pipeline to Malaysia and Singapore.

It was not clear whether ConocoPhillips intended to sell its whole Indonesian assets or will retain some of them. (alex/robert)