BP To Pay $7 Billion For Devon Assets

BP (NYSE: BP), Europe's largest oil company, will pay $7 billion to acquire exploration rights in Brazil, Azerbaijan and the Gulf of Mexico from Devon Energy (NYSE: DVN).

As part of the deal, Devon will acquire a 50% stake in BP's Kirby project in the Canadian oil sands for $500 million.

Devon is in the process of divesting its offshore and international oil assets to focus on the North American natural gas market. The company originally expected to get up to $7.5 billion for all of its divestures, but that sum will be surpassed with news of the BP deal.