Devon to sell RI assets to PetroChina

Devon to sell RI assets to PetroChina

OKLAHOMA CITY: Devon Energy Corp. confirmed it agreed to sell its Indonesian operations to PetroChina Co. for US$262 million cash, including working capital.

PetroChina had announced the deal earlier.

Devon said in a press release Monday it will receive about $250 million upon closing, plus an additional $12 million if certain events are completed.

The transaction is expected to close in April.

As of Dec. 31, 2001, Devon's Indonesian oil and gas properties had estimated proved reserves of about 80 million equivalent barrels, of which about 20 percent were classified as proved developed producing. The properties produced about 1.1 million barrels of oil equivalent net to Devon's interest during the first quarter.

The energy company said the transaction will allow the company to "largely" reach its goal of eliminating non-core properties.

For 2001, Devon reported operating earnings of $54 million, on revenue of $3.1 million. -- Dow Jones