Devon Energy Corporation has announced that it has entered into an agreement to sell its operations in Argentina to Petroleo Brasileiro S.A. – Petrobras for approximately $90 million.
The transaction, which is subject to Argentine regulatory approvals, is expected to close by December 31, 2002.
As of December 31, 2001, Devon’s Argentine oil and gas properties are said to have had estimated proven reserves of approximately 22 million barrels of oil and 267 billion cubic feet of natural gas.
Approximately 75 percent of the reserves were classified as proved undeveloped. The properties produced approximately 6,100 barrels of oil and 17 million cubic feet of gas per day net to Devon’s interest during the first six months of 2002.
‘This agreement to sell our Argentine assets follows the $262 million sale of our Indonesian business in April,’ said J. Larry Nichols, Devon’s chairman, president and chief executive officer. ‘After the sale of Argentina is completed, Devon’s international operations will be focused on our oil development projects in China and Azerbaijan and on high impact exploration projects offshore West Africa and Brazil.’