Concluding deal between BP and Devon may take 12 months
Azerbaijan, Baku, March 11 / Trend , S.Aliyev/
Obtaining regulatory approvals and other third party consents and final coordination of all details for concluding a deal on American Devon Company's sale of its assets in Azerbaijan, Brazil and the Gulf of Mexico to BP may take up to 12 months, a source at BP told Trend on March 11.
Devon Energy today announced it has reached an agreement with BP on the sale of assets in Azerbaijan, Brazil and the Gulf of Mexico for $7.0 billion. In Azerbaijan, acquisition of Devon's 5.63 per cent stake in the ACG development will increase BP's operating interest in the fields to 39.77 percent.
Upon estimates by BP, which is the operator of the project, the proved oil reserves in ACG exceed seven billion barrels.
In its report, BP said that it would pay Devon Energy $7.0 billion in cash for assets in Brazil, Azerbaijan and the US deepwater Gulf of Mexico. These include interests in ten exploration blocks in Brazil, including seven in the prolific Campos basin; a major portfolio of deepwater exploration acreage and prospects in the US Gulf of Mexico; and an interest in the BP-operated Azeri-Chirag-Gunashli (ACG) development in the Caspian Sea, Azerbaijan.
In addition, BP will sell to Devon Energy a 50 per cent stake in BP's Kirby oil sands interests in Alberta, Canada, for $500 million. The parties have agreed to form a 50/50 joint venture, operated by Devon, to pursue the development of the interest.
"This strategic opportunity fits well with BP's operating strengths and key interests around the world, offering us significant additional long-term growth potential with an emphasis on high-margin oil," said BP group chief executive Tony Hayward. "As well as giving us a broad portfolio of assets in the exciting Brazilian deepwater, it will strengthen our position in the Gulf of Mexico, enhance our interests in Azerbaijan and enable us to progress the development of Canadian assets."