Kerr-McGee Sells Ecuadorian Assets

Kerr-McGee will be exiting Ecuador. The company agreed to sell two oil lease concessions and its stake in a pipeline project to Perenco. Perenco will take over Blocks 7 and 21 in the Amazon basin as well Kerr-McGee's 4% stake in the OCP consortium, which is building a 503-kilometer, $1.1 billion oil pipeline. Block 7 produces more than 15,000 barrels oil per day and Block 21 is currently in development. The asset sales are subject to approval by governmental authorities and the OCP consortium. Kerr-McGee decided to pull out of Ecuador due to lower than expected production figures.