London. British oil giant BP said Thursday it will pay US firm Devon Energy 7.0 billion dollars (5.1 billion euros) for assets in Brazil, Azerbaijan and the Gulf of Mexico.
"BP today announced a transaction that will deliver a material exploration position in the deepwater offshore Brazil and significantly enhance its position in core strategic areas," the group announced in a statement.
"In a broad-ranging deal, BP will pay Devon Energy 7.0 billion dollars in cash for assets in Brazil, Azerbaijan and the US deepwater Gulf of Mexico."
The Brazilian assets will mark the British group's entry into the emerging market country.
BP chief executive Tony Hayward described the deal as a "strategic opportunity" that would offer long-term growth.
"This strategic opportunity fits well with BP's operating strengths and key interests around the world, offering us significant additional long-term growth potential with an emphasis on high-margin oil," Hayward said.
"As well as giving us a broad portfolio of assets in the exciting Brazilian deepwater, it will strengthen our position in the Gulf of Mexico, enhance our interests in Azerbaijan and enable us to progress the development of Canadian assets."
As part of the deal, BP will sell half of its Canadian oil sands project at Kirby in Alberta province, to Devon Energy for 500 million dollars.
The pair will create a 50:50 joint venture, operated by Devon Energy, to develop the project.
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