BP entered into $7.0 billion deal to acquire Devon Energy”s assets in Brazil, Azerbaijan and the U.S. deepwater Gulf of Mexico. These include interests in 10 exploration blocks in Brazil, including seven in the prolific Campos basin; a portfolio of deepwater exploration acreage and prospects in the U.S. Gulf of Mexico; and an interest in the BP-operated Azeri-Chirag-Gunashli (ACG) development in the Caspian Sea, Azerbaijan.

In addition, BP will sell to Devon Energy a 50 percent stake in BP”s Kirby oil sands interests in Alberta, Canada, for $500 million. The parties have agreed to form a 50/50 joint venture, operated by Devon, to pursue the development of the interest. Devon will commit to fund an additional $150 million of capital costs on BP”s behalf.

Completion of certain transfers will be subject to regulatory approvals and other third party consents.

“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 BP group chief executive Tony Hayward, in a prepared statement. “As well as giving us a broad portfolio of assets in the exciting Brazilian deepwater, it will strengthen our position in the Gulf of Mexico, enhance our interests in Azerbaijan, and enable us to progress the development of Canadian assets.”

One key aspect of the deal is that it will give BP an acreage position in offshore Brazil, with interests in eight licence blocks in the Campos and Camamu-Almada basins, in water depths ranging from 330 to 9,100 feet (100-2,780 meters), as well as two onshore licenses in the Parnaiba basin. The Campos basin blocks include three discoveries – Xerelete, pre-salt Wahoo and Itaipu – and the producing Polvo field.