São Paulo – British Petroleum (BP) announced today (11) the acquisition of the Devon Energy assets allowing the organisation to explore the pre-salt layer in Brazil.
The Devon assets referring to Brazil had previously been negotiated with Petrobras. The negotiation, for the total value of US$ 7 billion, inlcudes participation in 10 exploratory blocks in Brazil (seven in Campos Basin), as well as an important set of exploratory areas and prospects in the Gulf of Mexico, in the United States, and additional participation in the development of complex Azeri-Chirag-Gunashli (ACG) operated by BP in the Caspian sea, in Azerbaijan.
In the agreement, it was stipulated that BP should sell Devon 50% participation in its rights to the Kirby oil sands, in the Canadian province of Alberta, where there is heavy oil, for the value of US$ 500 million.
The companies should establish a joint venture operated by Devon (each with 50% participation) aiming at the development of this asset. Apart from that, Devon should take on the enagement of covering the capital cost of some US$ 150 million in the name of BP.
“This strategic opportunity is perfectly alligned with the BP operating capacity and key interests in the world, offering significant additional potential growth in the long-run, with special emphasis in oil production,” said Tony Hayward, the global president of BP Group, in a company press statement.
“Apart from positioning a broad portfolio of assets in the stimulating environment of deep waters in Brazil, this opportunity should also strengthen our position in the Gulf of Mexico, should expand our interests in Azerbaijan and allow us to progress in the development of our assets in Canada,” finished off the executive.
The agreement grants BP participation in eight blocks in Campos and Camamu-Almada Basins, at water depths ranging from 100 to 2,780 metres, as well as conessions on land in Parnaíba Basin. The blocks in Campos Basin include three discoveries – Xerelete, Wahoo (in the pre-salt) and Itaipu – and also covers Polvo field, which is currently in production.
After the agreement is concluded, the employees at Devon Brazil should be incorporated into the BP portfolio.
*Translated by Mark Ament
