CALGARY, Alberta -- EnCana Corp. has agreed to sell all of its remaining interests in Brazil for approximately $165 million in cash, before closing adjustments. Under the agreement, a consortium of two Indian companies based in Mumbai – Videocon Industries Ltd. and Bharat Petroleum Corp. Ltd. subsidiary Bharat PetroResources Ltd. – will purchase all of the shares in EnCana's Brazil subsidiary, EnCana Brasil Petróleo Limitada.
"This sale reflects the continuation of our focus on North American unconventional natural gas and integrated oil sands resources. When added to our previous 2007 sales of exploration interests in Chad and Canada's Mackenzie delta, this Brazil asset sale is expected to take this year's divestiture proceeds to more than $500 million, our 2007 target," said Randy Eresman, EnCana president and CEO.
With this sale, EnCana is exiting Brazil. The company's Brazil interests in this sale include 10 offshore exploration blocks in the Espírito Santo, Sergipe-Alagoas, Potiguar, and Campos basins.
The sale has an effective date of Jan. 1, 2007. It is expected to close in 1Q 2008.