BP announces deal to search for oil off Brazilian coast

BP announces deal to search for oil off Brazilian coast for £4.7 billion
BP announces deal to search for oil off Brazilian coast for £4.7 billion

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Thursday, 11, Mar 2010 12:40

By inthenews.co.uk staff.

Oil giant BP has announced today it has secured a deal to begin deepwater offshore exploration for oil off the Brazilian coast.

The firm said it would pay US firm Devon Energy £4.7 billion for its Brazilian assets, as well as those in Azerbaijan and the US deepwater Gulf of Mexico.

In addition, BP will sell to Devon Energy a 50 per cent stake in BP's Kirby oil sands interests in Alberta, Canada, for $500 million (£332.5 million). The oil giant said that the two firms have agreed to form a 50/50 joint venture, operated by Devon, to pursue the development of the interest.

"This strategic opportunity fits well with BP's operating strengths and key interests around the world, offering us significant additional long-term growth potential with an emphasis on high-margin oil," said BP group chief executive Tony Hayward.

"As well as giving us a broad portfolio of assets in the exciting Brazilian deepwater, it will strengthen our position in the Gulf of Mexico, enhance our interests in Azerbaijan and enable us to progress the development of Canadian assets."



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