CNOOC acquires Panyu from Devon

China National Offshore Oil Corp. (CNOOC) has acquired the Panyu field offshore China from Devon for $515 million, or approximately $370 million after tax.

Offshore staff


OKLAHOMA CITY -- China National Offshore Oil Corp. (CNOOC) has acquired the Panyu field offshore China from Devon for $515 million, or approximately $370 million after tax. During 2009, Devon's production from the field was approximately 12,000 b/d of oil.

"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," says 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, the company says. Devon expects the closings of all divestitures to be completed prior to year-end.

4/30/2010

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