Devon CEO: Oil Majors Seen Main Bidders On Gulf Of Mexico Assets
October 19 2009 - 3:04PM
Dow Jones News
The top executive of independent oil and gas producer Devon
Energy Corp. (DVN) said Monday that the sale of stakes in some of
its Gulf of Mexico assets will be complete next year and that the
major oil companies are likely to be the main bidders.
The company's showroom has received a "robust" interest from
international and national oil companies, Devon Chief Executive
Larry Nichols said in a meeting with journalists.
The executive added that the company isn't in talks that would
lead to closing deals with "anybody," including Chinese oil
companies.
There have been recent reports that China's Cnooc Ltd. (CEO) was
in talks with Norway's StatoilHydro ASA (STO), and that it is also
looking at Devon's auction of stakes in its Lower Tertiary
plays.
Devon expects to finish the selling process next year, and that
the bidding process will remain open until the results of its
Cascade discovery well are complete this year, Nichols said.
Cascade was the first of three discoveries to date by Devon in
the Gulf of Mexico's emerging lower Tertiary trend.
Devon CEO said in a May earnings call that the company will sell
stakes in its four oil discoveries in deepwater Gulf of Mexico:
Kaskida, St. Malo, Jack and Cascade. They have stakes in each
field, all of which are thought to be major discoveries.
-By Isabel Ordonez and Susan Daker, Dow Jones Newswires; 713
547-9207; isabel.ordonez@dowjones.com