Devon Energy has completed the sale of its oil and gas business in the African nation of Equatorial Guinea. The sale price was $2.2 billion before taxes, $1.7 billion after taxes. The buyer is GEPetrol, the national oil company of Equatorial Guinea. The effective date of the sale was January 1, 2008.
"Equatorial Guinea was the most significant asset in our $3 billion African divestiture program," commented John Richels, Devon's President. "We are very pleased with the results of the program and expect to complete the remaining approximately $250 million in transactions in the third quarter."
The divested properties in Equatorial Guinea include estimated proved reserves of 55 million barrels of oil. Devon's share of production from the properties was about 20,000 barrels of oil per day. Estimated proved reserves and production attributable to Devon's African divestiture properties are accounted for as discontinued operations. In accordance with accounting for discontinued operations, proved reserves in Africa were not included in Devon's companywide proved reserves at December 31, 2007. Likewise, oil and gas production from Africa is not included in Devon's companywide production volumes.
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