?Devon Energy Corp., Oklahoma City, (NYSE: DVN) and BP Exploration & Production Inc. have exercised their option to acquire a combined 25% interest in the Kaskida Unit in the deepwater Gulf of Mexico from Anadarko Petroleum Corp., The Woodlands, Texas, (NYSE: APC) for an undisclosed price, blocking the pending sale of this interest to Norway-based StatoilHydro (Oslo: STL).
Devon will own 26.67% interest following the sale, up from 20% currently. BP will hold 73.33%, up from 55%, and is operator.
StatoilHydro in March agreed to pay Anadarko $1.8 billion in cash plus additional consideration valued at $300 million for Anadarko’s 50% interest in Peregrino Field offshore Brazil and the 25% nonoperated Kaskida interest. The Peregrino deal is unaffected by the Kaskida purchase.
The adjusted consideration for Peregrino alone was not disclosed. A spokesman for Anadarko says Devon and BP’s offers for the Kaskida interest were equal to what was offered by StatoilHydro.
The 51,800-acre Kaskida Unit covers nine blocks in the Keathley Canyon deepwater lease area of the Gulf of Mexico. The 2006 Kaskida discovery well encountered approximately 800 net feet of hydrocarbon-bearing sands. Devon holds interests in some 200 blocks in the Lower Tertiary trend with an inventory of 20 exploratory drilling prospects identified.
Devon senior vice president, exploration and production, Stephen J. Hadden says, “We are pleased to have an opportunity to increase our ownership in the Kaskida discovery. The Lower Tertiary trend is an important part of Devon’s long-term exploration program, and we believe Kaskida is the largest of our four Lower Tertiary discoveries to date.”
He adds that Devon expects to begin producing oil from the Lower Tertiary trend in 2010 from the Cascade discovery.

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