BP Pays $7 Billion for Devon Assets in Brazil, Gulf of Mexico

BP Pays $7 Billion for Devon Assets in Brazil, Gulf of Mexico


March 11 (Bloomberg) -- BP Plc, Europe’s largest oil and gas company, will pay Devon Energy Corp. $7 billion in cash for assets in Brazil, the Gulf of Mexico and Azerbaijan.

As part of the deal, Devon will buy a 50 percent interest in BP’s Kirby oil sands project in Canada, BP said in a press release in London today. The companies will form a 50-50 joint venture there, with Devon paying $500 million for its stake and committing to pay $150 million of BP’s capital costs.

“This strategic opportunity fits well with BP’s operating strengths and key interests around the world,” said BP Chief Executive Officer 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.”

Hayward said last week that BP was interested in gaining access to assets off the coast of Brazil as he tries to secure additional reserves. BP outpaced Exxon Mobil Corp. in oil production for the first time last year.

source: bloomberg