Azerbaijan, Baku, Nov. 4 / Trend E. Ismayilov /
The most significant receipt of the U.S. company Devon Energy for the third quarter of this year was the increase derived from the sale of assets in Azerbaijan, a statement said.
Devon's net income was $2.1 billion or $4.81 per ordinary share for the third quarter, the report said.
Devon Energy's 5.63 percent stake in the ACG development will be split between BP (3.29 percent) and the following parties which have exercised preferential rights in relation to the transaction - Chevron (0.99 percent), Inpex (0.96 percent) and Itochu (0.38 percent).
BP's costs in the third quarter amounted to about $1,1 billion to buy shares of Devon in ACG.
The additional interest acquired from Devon will increase BP's operating interest in the ACG development to 37.43 percent and those of Chevron, Inpex and Itochu to 11.27 percent, 10.96 percent and 4.30 percent respectively, with the remaining interests held by AzACG (a subsidiary of SOCAR, the State Oil Company of the Azerbaijan Republic - 10 percent), Statoil (8.56 percent), Exxon (8.00 percent), TPAO (6.75 percent) and Hess (2.72 percent).
On March 11 BP announced a broad-ranging deal, in which BP agreed to pay Devon Energy $7.0 billion in cash for assets in Brazil, Azerbaijan and the US deepwater Gulf of Mexico. The Azerbaijan element is the third to be completed so far, following completion of acquisition of assets in the Gulf of Mexico and the sale of a 50 per cent stake in BP's Kirby oil sands interests in Canada. The purchase of assets in Brazil has yet to be completed.
According to the report, it will be completed by late 2010. The transaction value amounts to $3.2 billion. The company's revenues on the basis of the sale of its assets will hit $10 billion and after deducting taxes, this figure will hit $8 billion.