Devon Puts Indonesian Assets Up for Sale

Devon Energy is preparing a data room and sales information on its assets in Indonesia that are up for sale. The sale of all of its Indonesian upstream assets are being handled by Credit Suisse First Boston. A data room would also be made available on the internet, with general information about the properties. The data room is expected to be ready early next year, and Credit Suisse plans to invite 10- 20 prospective bidders to the data room. It will likely prove difficult to set a timeframe for concluding the sale. As it took YPF Repsol almost two years to dispose of its Indonesian assets after putting them on the market.

Devon holds interests in the Salawati Basin (Irian Jaya), Jabung (Central Sumatra) and Tuban (East Java) production sharing contracts. These pump a combined total of about 46,000 b/d of light sweet crudes Walio, Geragai, and Mudi. The Jabung block is also part of a deal to supply up to 350-mil cu ft/day of pipeline natural gas to Singapore for 20 years starting 2003. The only exploration acreage equity held by Devon is in Gulf Indonesia Resources-operated block South Jambi B in South Sumatra. Devon's operations are primarily focused in North America. Devon purchased Anderson Exploration in October of this year and hopes to complete its acquisition of Mitchell Energy by year-end. Devon is also exiting Thailand, Malaysia, Qatar and shedding the majority of its interests in Brazil.