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%.

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