LONDON, March 11 (UPI) -- Supermajor BP announced Thursday it reached a $7 billion deal with Devon Energy for access to oil reserves in Brazil, Azerbaijan and the Gulf of Mexico.
Tony Hayward, the chief executive of BP, hailed the measure as a "strategic opportunity" to expand its global holdings.
"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," he said.
BP as part of the deal will sell Devon Energy a 50 percent stake in its Kirby oil sands portfolio in Alberta, Canada, for $500 million.
The acquisition includes 10 blocks in Brazil, including seven in the Campos basin. Devon in December said it has identified 20 prospects in the region, with a potential to realize at least 2 billion barrels of oil.
In November, Devon said it was selling its shares in the offshore Azeri-Chirag-Guneshli oil field to focus on its North American assets.
The BP acquisition includes interest in the ACG complex in Azeri waters of the Caspian Sea. Acreage in the lucrative deepwater reserves in U.S. waters of the Gulf of Mexico is included in the deal.
"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 Hayward.
