Devon Energy in Deal with BP in Oil Sands' Kirby Project
Devon Energy (NYSE:DVN) has joined with BP PLC (NYSE:BP) in a strategy of increasing its presence in the Canadian oil sands.
Devon gets access to BP's Kirby project, while selling its offshore oil assets to BP, which includes the high-producing Campos Basin in Brazil waters, along with some assets in the Gulf of Mexico. This is a good fit for BP because they already lead that region in oil and gas production.
The Kirby project is considered a very strong production site, and is located in a strategically beneficial area of the sands.
Analysts feel it's a win/win deal for both companies, and each should benefit nicely from it over the next decade or more.
Devon is paying $500 million for half of the stake in the Kirby project, which has an estimated 1.5 billion barrels of bitumen there, which it seems Devon feels actually holds more.
Devon Energy in Deal with BP in Oil Sands' Kirby Project
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