Wednesday, November 18, 2009
Devon Energy to Sell Assets
Devon Energy announced its plans to divest all of its offshore and international energy properties so that it would be able to focus on its domestic onshore business. The majority of Devon's business centers on natural gas, which has not bounced back recently, unlike oil. The company believes that the sale of these businesses could generate proceeds anywhere from $4.5 to $7.5 billion after taxes. Devon says that it intends to direct the proceeds to its United States and Canadian portfolios and to pay back debt. There is speculation that the Chinese National Offshore Oil Corporation (Cnooc) would be interested in this purchase, especially after buying a stake in Statoil's Gulf assets.