Indian exploration company Prize Petroleum Co., a unit of state-run Hindustan Petroleum Corp., is in talks to buy Egyptian assets of US-based Devon Energy Corp. (DVN), reported the DNA newspaper.
“We have been approached by the managers of the sale,” the paper quoted Prize Petroleum’s chief economic officer, M.N. Prasad, as saying.
Devon announced last November that it plans to terminate its operations in Egypt, claiming that it needs to focus on new regions that can better provide “meaningful growth.”
Devon’s four oil blocks in Egypt produce a total of 7,000-7,500 barrels a day, of which Devon’s share counts for 4,800 barrels. The remaining share is held by the Egyptian General Petroleum Corporation.
Prize is intending to bid for the four blocks. The Indian company is planning “an initial public offering by October and will increase to $50 million through a private placement before the issue.”
(Noozz, Upstream Online & Market Watch)