Brazil approves BP's purchase of oil blocks from Devon

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, May 11 -- Brazil’s National Petroleum Agency (ANP) has given its final approvals for BP PLC to complete the purchase of 10 exploration and production blocks in Brazil from Devon Energy Corp.

“The completion of this acquisition delivers a material position in some of Brazil’s most important hydrocarbon basins,” said BP Chief Executive Bob Dudley.

Devon Pres. And Chief Executive Officer John Richels said Devon expects to close the deal later this week, adding that the company’s focus “is now on its highly competitive North American onshore exploration and production business.”

BP said the interests include eight license blocks in the Campos and Camamu-Almada basins in 100-2,780 m of water, as well as two onshore licenses in the Parnaiba basin.

The Campos basin blocks include four discoveries: Xerelete, presalt Wahoo, Itaipu, and Fragata. The blocks also include Polvo field, which is currently producing 25,000 b/d of oil.

BP becomes operator of Polvo, and of Blocks BM-C-32 (containing Itaipu) and BM-C-34 (consisting of Blocks C-M-471 and C-M-473, and containing Fragata) in the Campos basin; Block BM-CAL-13 in the Camamu-Almada basin; and onshore Block BT-PN-2 in the Parnaiba basin.

BP also gains nonoperating interests in Blocks BM-C-30 (containing Wahoo), BM-C-35 (containing Xerelete, and formerly called Block BC-2), all in the Campos basin; as well as onshore Block BT-PN-3 in the Parnaiba basin.

The blocks are part of the transaction between BP and Devon Energy announced in March 2010. Under the agreement, BP will obtain ownership of Devon Energy do Brasil Ltda., the Devon entity that owns interests in the blocks.

Contact Eric Watkins at hippalus@yahoo.com.



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