Amoco to divest $1.9 billion in E&P assets

Amoco Corp. said last week that it completed, or has under contract, a series of divestitures of North American exploration and production and related assets worth more than $1.9 billion. The move is designed to focus the company's North American E&P portfolio.

April 20, 1998

2 min read

"These divestments allow us to focus our resources on the most promising producing areas in our exploration and production portfolio," said L. Richard Flury, executive vice-president responsible for Amoco's E&P sector. "We believe this rationalized asset position is a step toward reaching our corporate goal of 15% return on capital employed by 2001."

The sale of U.S. oil and natural gas producing properties will generate $1.55 billion in cash, securities, and properties. The remaining $380 million in proceeds will come from divestments of Amoco Gas Co., Canmar, and Canadian exploration and production assets.

The U.S. assets involved in the divestitures, sold in seven regional packages, are in Alabama, Wyoming, Colorado, New Mexico, Oklahoma, and Gulf Coast locations.

In addition to mature producing assets, some of the packages included operating centers, processing plants, gathering systems, and other infrastructure. These assets represent about one third of Amoco's domestic E&P properties, accounting for about 9% of the company's 1997 U.S. net production.