U.S. oil and gas producer ConocoPhillips will sell its assets in Indonesia’s Corridor Block for US $1.355 billion to local MedcoEnergi, while acquiring new assets in AustraliaThe American company said it will sell the subsidiary that indirectly owns the company’s 54 percent interest in the Indonesia Corridor Block Production Sharing Contract (PSC) and a 35 percent shareholding interest in the Transasia Pipeline Company.

ConocoPhillips said it is buying through its Australian subsidiary 10 percent shareholding interest in Australia Pacific LNG (APLNG) from Origin Energy for up to US $1.645 billion, which will be funded from cash on the balance sheet.“The Asia Pacific region plays an important role in our diversification advantage as an independent E&P and these two transactions enhance that advantage by lowering our aggregate decline rate and diversifying our product mix,” said Ryan Lance, ConocoPhillips chairman and chief executive officer in a statement.

The Indonesia assets that are being sold produced approximately 50 thousand barrels of oil equivalent per day (MBOED) for the nine months ended Sept. 30, 2021, and had year-end 2020 proved reserves of approximately 85 million barrels of oil equivalent, the company said. “We are also pleased to have the opportunity to effectively deploy the proceeds from the sale of our Indonesia assets toward additional shareholding interest in APLNG, which supplies LNG to long-term buyers in both China and Japan and is currently the largest supplier of natural gas to Australia’s East coast domestic market, meeting over 30% of its total demand,” added Lance.