Devon sells ACG stake to BP for $2 billion

By OGJ editors
HOUSTON, Aug. 17
-- Devon Energy Corp. has completed the sale to BP PLC of its 5.6% interest in ACG (Azeri-Chirag-Gunashli) oil field off Azerbaijan for $2 billion.

Devon’s share of production was about 17,000 b/d of oil.

The company acquired a 4.8% interest in the ACG production sharing agreement through a 1999 merger of PennZenergy Co. It added a 0.8% share in early 2001.

Devon has been divesting international and Gulf of Mexico holdings to concentrate on North American unconventional oil and gas resources. John Richels, Devon president and chief executive officer, said pretax proceeds from divestitures so far total about $6.7 billion. He said the divestiture program would be complete about yearend with the sale of Devon’s assets in Brazil. 

Devon Energy’s 5.63% stake will be split between BP 3.29% and partners exercising preferential rights related to the transaction: Chevron 0.99%, Inpex 0.96%, and Itochu 0.38%.

ACG interests after the transaction are BP, operator, 37.43%; Chevron 11.27%; Inpex 10.96%; AzACG (a subsidiary of state-owned SOCAR) 10%; Statoil 8.56%; ExxonMobil 8%; TPAO 6.75%; Itochu 4.3%; and Hess 2.72%.

Related Articles

Chevron to increase production, maintain capex level through 2017

03/13/2014 Chevron Corp. will increase production by 20% through 2017 without raising capital expenditures, executives said Mar. 11 at the company's annual se...

IHS CERAWeek: Oil executives cite rising business costs

03/04/2014 Demand for all types of energy continues to increase as oil and gas companies adapt to handle the ever-rising costs of finding and producing hydroc...

Chevron gets approval for Alder field, reaches FID

01/20/2014 Chevron Corp. UK subsidiary Chevron North Sea Ltd. has reached a final investment decision (FID) and received approval from the UK government to pr...

Feds call for revamp in safety regulation at US refineries

12/23/2013 The US Chemical Safety Board (CSB) has proposed a more-rigorous safety management regulatory framework for refineries in California that could exte...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected