Devon to Sell Panyu Field to CNOOC
Devon Energy has agreed to sell its producing Panyu field located offshore China to China National Offshore Oil Corporation for $515 million, or approximately $370 million after tax. During 2009, Devon's production from the Panyu field was approximately 12 thousand barrels of oil per day.
"Since announcing our plans this past November to strategically reposition the company to focus on its world-class North American onshore assets, we have divested nearly $10 billion of Gulf of Mexico and international assets," said Larry Nichols, Devon's chairman and chief executive officer. "This translates into an estimated $7.9 billion in total after-tax proceeds, easily exceeding the top end of our initial expectations of $4.5 to $7.5 billion."
Completion of the transaction is subject to customary closing conditions and regulatory approvals. The company has now announced the sale of the majority of the divestiture assets. The divestiture process is ongoing for Devon's remaining exploration assets in China and Angola, as well as other minor international assets. Devon expects the closings of all divestitures to be completed prior to year-end. The company plans to provide updates to guidance for 2010 production, expenses and capital expenditures as the transactions are closed.
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