Tuesday, September 7, 2010

BP (NYSE:BP) Acquires South China Sea Block from Devon (NYSE:DVN)

BP (NYSE:BP) has acquired a minority interest in a South China Sea block from Devon Energy Corp. (NYSE:DVN), buying a 40.82 percent interest in block 42/05.

Chevron Corp. (NYSE:CVX) is their partner in the deal, who bought the remaining 59.18 percent which gives them operating interest in the block.

It didn't bother China to give BP approval to take a stake in the deep-water block, which China's Cnooc Ltd. confirmed they did.

Devon has been divesting of assets outside of North America in order to focus its attention on its onshore assets in Canada and America.

Renewed interest in the South China Sea has grown since the discovery of trillions of cubic feet of natural gas reserves in 2006 by Husky Energy Inc. (TSE:HSE).

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