Devon Energy to sell assets that don't fit long-term aim: Report

US oil and gas firm Devon Energy Corp. is planning to dispose assets that no longer fit its long-term objective, Dow Jones Newswires reported on Monday according to the company's spokesman.

"We will be selling assets in all Devon's operating divisions," said Devon spokesman, Michael Barrett in an e-mail response to a Dow Jones Newswires' query, adding that in its international division, Devon has decided to focus "only in three regions, China, Azerbaijan and coastal West Africa."

Most of Devon's proven reserves outside North America are concentrated in three countries: Azerbaijan, Indonesia and Argentina.

In Indonesia, "all assets are being divested," said Barrett. "A data room has been opened and a number of companies have been in contact with us," he added.

Devon operates, and has a 30% stake, in the Jabung block in South Sumatra. It has interests in the nearby South Jambi Block B gas project operated by Gulf Indonesia Resources Ltd.

The two are part of three blocks where natural gas would be sourced in a sale agreement to Singapore starting 2003.

Credit Suisse First Boston has been appointed to manage Devon's asset sale in Indonesia, and will offer detailed information in a "data room, open by invitation to companies which are financially able to purchase those assets," said a potential buyer in Indonesia.

CSFB and Devon will not comment on the asset value and the sale timing until the deals are completed. But an estimate of less than US$200 million has been given by an official from Indonesia's national oil and gas company, Pertamina.

Pertamina is keen on "only four out of six blocks offered," a company official told Dow Jones Newswires Monday.

"But all six blocks are sold in one package," he said, reiterating last week's report on the en-bloc sale of Devon's Indonesian assets.

Pertamina is only keen in Jambi Block B and Jabung block in South Sumatra, Tuban in East Java and Kepala Burung in Irian Jaya, said the official from Pertamina's upstream division.

Pertamina isn't interested in the Bangko block located in southeastern Sumatra, which remains at exploratory stage, and Sulawati-Kepala Burung in Irian Jaya, because it is a mature field, said the official.

In the executive briefing, Devon stated its targeted deadline for the conclusion of its asset sales at first-half of 2002. (*)