BP Approved for Brazilian Assets Purchase

Will acquire 10 exploration and production blocks in $7 billion deal

BP said on May 11 that Brazilian regulators approved its acquisition of 10 exploration and production blocks in Brazil, as part of a $7 billion deal for assets from Devon Energy.

The deal also includes assets in Azerbaijan and the Gulf of Mexico.

"The regulatory approvals from the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP) were the last required to conclude the agreement announced in March last year. It is expected formal completion of the acquisition will take place shortly," the company said.

"The completion of this acquisition delivers a material position in some of Brazil's most important hydrocarbon basins and reinforces the group's strategy of securing strong exploration positions in such basins and working with strong national champions," said BP Chief Executive Bob Dudley.

The transaction also comes two months after BP won majority control of Brazilian producer of ethanol and sugar CNAA for $680 million, amid rising demand for alternative energy. Ethanol, made using sugar, is widely used in Brazil as a cheaper alternative to gasoline, or motor fuel.

"BP's return to exploration and production operations in Brazil adds to the investments already being made by other BP group companies in the country; in biofuels, lubricants and aviation fuels, highlighting the strategic importance of Brazil for BP," the London-listed energy giant added.

Copyright Agence France-Presse, 2011

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