PetroChina wins Devon?s Indonesian assets

US Independent Devon Energy Corp. announced Monday that it has entered into an agreement to sell its Indonesian operations to PetroChina Company Limited for total cash consideration of US$ $262 million, including working capital.

The company said it wouldl receive approximately $250 million upon closing plus an additional $12 million upon successful completion of certain events.

The transaction is expected to close in April.

As of December 31, 2001, Devon's Indonesian oil and gas properties had estimated proved reserves of approximately 80 million equivalent barrels, of which approximately 20 percent were classified as proved developed producing. These properties produced approximately 1.1 million barrels of oil equivalent net to Devon's interest during the first quarter of 2002.

"With the sale of the Indonesian operations we have now largely accomplished our goal of bringing focus to Devon's asset base by eliminating non-core properties," said J. Larry Nichols, Devon's chairman, president and chief executive officer.

Devon holds interests in the Salawati Basin (Irian Jaya), Jabung (Central Sumatra) and Tuban (East Java) production sharing contracts. These pump a combined total of about 46,000 barrels per day of light sweet crude Walio, Geragai, and Mudi.

The Jabung block is also part of a deal to supply up to 350 million standard cubic feet per day of pipeline natural gas to Singapore for 20 years starting 2003.

The only exploration acreage equity held by Devon is in Gulf Indonesia Resources-operated block South Jambi B in South Sumatra. (Robert)