Uchenna Izundu
International Editor
LONDON, Jan. 25 -- Devon Energy Corp. will sell its interests in 16 blocks in West Africa because they no longer fit within its international portfolio.
As of Dec. 31, 2006, Devon has 90 million boe of proved reserves in Equatorial Guinea, Gabon, and Ivory Coast, which represent about 4% of the company's total reserves. The properties are expected to produce 11 million boe in 2007.
Devon said that it also will sell its 23.75% interest in the ExxonMobil Corp.-operated Zafiro field in Equatorial Guinea, which is its most significant producing African asset. In 2005, Zafiro's production averaged more than 260,000 b/d of gross oil through the Serpentina floating production, storage, and offloading vessel, the Jade platform, and the Zafiro floating production unit.
Devon will focus its energies instead on developing its assets in onshore North America and the deepwater Gulf of Mexico. Devon Pres. John Richels said, "At the same time we will be concentrating our international operations in Brazil and China, where we have established competitive advantages."
Devon will use the money gained from the sale to repurchase company shares and pay off its debts of $1.4 billion as at the end of September 2006.
Contact Uchenna Izundu at [email protected].