British oil giant BP PLC (BP) is set to acquire oil assets from U.S.-based independent oil and gas producer Devon Energy Corp. (DVN) in a deal worth up to $6 billion, according to reports Wednesday. Devon will reportedly sell to BP its interests in the Gulf of Mexico, offshore Brazil and a stake in its Canadian energy business. A deal could be announced as early as Thursday, reports said.
The deal would reinforce BP's dominant position in the Gulf of Mexico, where it is already the largest producer with some 500,000 barrels of daily production capacity, and also give it a stake in Devon's operations in Canada. It would also give BP a foothold in the sought-after oil region off the Brazilian coast.
BP has said it is looking for oil exploration opportunities in Brazil, where some of the biggest finds in decades have been made in recent years. Devon has 1.5 million acres in the Gulf of Mexico, most of it undeveloped.
However, it was not clear whether the would include Devon's other international assets, such as its offshore oil fields and exploration blocks in China and its 5.6% interest in a huge oil field in the Azerbaijani sector of the Caspian Sea, Azeri-Chirag-Gunashli.
Devon and its advisers are said to be considering other suitors for the sale of the assets, including China National Offshore Oil Corp., known as Cnooc, and companies like Chevron Corp (CVX). However, BP is seen as the front-runner to buy the assets.
Meanwhile, BP has been upgrading its refinery in Whiting, Indiana, so that it can process heavy oil from Canada. BP has long been on the hunt for Canadian oil sands properties to feed Whiting, and Devon's properties are seen as a good strategic fit.
Devon, a mid-sized company, is one of the biggest U.S. independent producers - companies that produce oil and gas but do not have refining or marketing businesses. Offshore projects have proven difficult for companies like Devon, not only because of their high cost but also because they take years to start generating revenue.
In November 2009, Devon said it planned to sell all its offshore and international assets in order to focus on its onshore North American energy business, including natural gas reserves in the Barnett Shale. The company expects to generate after-tax proceeds of $4.5 billion to $7.5 billion from the divestitures. Devon sold its African assets in 2007 and 2009.
In early February, Devon announced that Maersk Oil purchased Devon's 25% working interest in the Jack Lower Tertiary development project in the Gulf of Mexico. In December 2009, Devon had announced an agreement with Maersk to purchase Devon's interests in three lower tertiary projects. However, other working interest owners in the St. Malo and Cascade projects exercised preferential rights to purchase Devon's interests.
Devon confirmed at that time that the aggregate purchase price of its interests in the Jack, St. Malo and Cascade Lower Tertiary projects remains $1.3 billion. The company said it estimates after-tax proceeds from the combined transactions at $1.1 billion.
DVN closed Wednesday's regular trading session at $71.85, up $1.00 or 1.41% on a volume of 6.10 million shares, while BP closed trading at $56.19, up $0.15 or 0.27% on a volume of 6.18 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.