ConocoPhillips has notified government authorities in Kazakhstan and its co-venturers of the company's intent to sell its 8.4 percent interest in the North Caspian Sea Production Sharing Agreement (Kashagan) to ONGC Videsh Limited.

Subject to various government approvals, Kazakhstan state preemption rights and co-venturers' preemption rights, ONGC Videsh Limited, the international arm of Oil and Natural Gas Corporation Limited, India, would acquire ConocoPhillips' interest in Kashagan, which is located in the Kazakh sector of the Caspian Sea.

The transaction is expected to close in the first half of 2013. Expected proceeds are approximately $5 billion, which represents the purchase price plus expected working capital and customary adjustments at closing.

'The sale of this quality asset is an important component of our ongoing strategic asset disposition program,' said Don Wallette, executive vice president, Commercial, Business Development, and Corporate Planning. 'We are pleased that ONGC Videsh recognizes the value of this asset.'

Tags: ConocoPhillips