Tuesday, November 30, 2010

BP (NYSE:BP) Must Wait for Devon (NYSE:DVN) Oil Block Decision from Brazil

The state oil director of Brazil, ANP, told BP (NYSE:BP) they'll have to wait until 2011 before they decide on whether or not to allow them to go ahead with a proposed acquisition of offshore oil blocks from Devon Energy (NYSE:DVN).

ANP said they want to get more clarity on the plans of BP for the oil blocks before they make the decision.

Also of concern was a requirement for more information on the Deepwater Horizon oil rig explosion and failure which led to the disaster in the Gulf of Mexico.

Haroldo Lima, director general of the ANP, is interested in the long-term commitment of BP, and whether that's part of their strategy. BP Chief Executive Officer Robert Dudley has said they're interested in a long-term relationship with Brazil.

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