CNOOC to buy Devon interest off China

CNOOC Ltd. has agreed to acquire 24.5% participating interests from Devon Energy Corp. in producing Block 15/34 in the Pearl River Mouth basin of the South China Sea for $515 million.

By OGJ editors
HOUSTON, Apr. 30
-- CNOOC Ltd. has agreed to acquire 24.5% participating interests from Devon Energy Corp. in producing Block 15/34 in the Pearl River Mouth basin of the South China Sea for $515 million.

The block, about 200 km south of Hong Kong in 100 m of water, includes Panyu 4-2/5-1 oil field, which produces 49,000 b/d. The field started production in 2003.

CNOOC is operator. The deal will raise its stake to 75.5%. ConocoPhillips holds the other 24.5%.

Devon has been divesting international and Gulf of Mexico interests in a strategy announced last year to concentrate on onshore North American operations.

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