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August 2010 
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BP Makes $7bn Oil Deal In Brazil |
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Muazzin Mehrban, March 2010 |
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(11 March 2010)
British Petroleum (BP) has confirmed it will begin exploration off the coast of Brazil, through a $7bn deal to buy oil and gas assets from Devon Energy. The Financial Times relays that under the terms of the deal, BP will also widen its operations in the Mexican Gulf and increase interests in Azerbaijan.
In return, the UK major will receive a $500m payment to create a joint venture with Devon to better exploit its oil site in Alberta, Canada. Reports estimated that the deep fields off Brazil hold close to 80 billion barrels of oil, with industry executives touting the region to have as much potential as the North Sea.
Already, several western companies have forged partnerships with Petrobas, Brazil’s national oil company, in order to explore and develop fields in the region.
Such names include Exxon Mobil, BG, Galp, Repsol and Royal Dutch Shell.
BP’s own deal with Devon, a US company with several licence blocks in conjunction with Petrobas, will give the oil major a faster and more direct route into the country’s crude resources.
“This strategic opportunity fits well with BP’s operating strengths and key interests around the world, offering us significant additional long-term growth potential with an emphasis on high-margin oil,” said Tony Hayward, BP’s chief executive, in a statement.
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