BP PURCHASES DEVON ENERGY`S SHARE IN AZERI-CHIRAG-GUNASHLI OILFIELD

Baku, August 17 (AZERTAC). BP has announced the completion of its purchase from Devon Energy of an additional interest in the BP-operated Azeri-Chirag-Gunashli (ACG) oilfield.

"This is an important step which follows our announcement in March 2010 of a broad-ranging deal between BP and Devon Energy of which the Azerbaijan component has now been completed. The acquisition of the additional interest in Azerbaijan is part of BP`s commitment to the Caspian region as a core strategic area where we already hold a strong position and intend to enhance this significantly in the future,” said Rashid Javanshir, president of BP Azerbaijan.

Devon Energy`s 5.63% stake in the ACG development will be split between BP (3.29%) and the following parties which have exercised preferential rights in relation to the transaction – Chevron (0.99%), Inpex (0.96%) and Itochu (0.38%).

The additional interest acquired from Devon will increase BP`s operating interest in the ACG development to 37.43% and those of Chevron, Inpex and Itochu to 11.27%, 10.96% and 4.30% respectively, with the remaining interests held by AzACG (a subsidiary of SOCAR, the State Oil Company of the Azerbaijan Republic – 10%), Statoil (8.56%), Exxon (8%), TPAO (6.75%) and Hess (2.72%).

On 11 March, BP announced it had agreed to pay Devon Energy $7bn in cash for assets in Brazil, Azerbaijan and the US deepwater Gulf of Mexico. The Azerbaijan element is the third to be completed so far, following the completion of the acquisition of assets in the Gulf of Mexico and the sale of a 50% stake in BP`s Kirby oil sands interests in Canada. The purchase of assets in Brazil has yet to be completed.