Devon Energy Corporation announced that it has agreed to sell its oil and gas business in the African nation of Equatorial Guinea for $2.2 billion. The buyer is GEPetrol, the national oil company of Equatorial Guinea.

Devon estimates its after-tax proceeds will be approximately $1.7 billion. The effective date of the sale is January 1, 2008. Completion of the transaction is subject to customary closing conditions and approvals. Devon expects closing to occur on or before May 30, 2008.

Devon's principal asset in Equatorial Guinea is its 23.75 percent participating interest in the Zafiro offshore oil field, located on Block B. Estimated proved reserves attributable to Zafiro were 55 million barrels of oil at year-end 2007. Devon's share of production from Zafiro is currently about 20,000 barrels per day.

Other assets included in the transaction are Devon's interests in offshore Blocks C and P. The two blocks are undeveloped.

"This transaction represents the largest piece of our African divestiture program," said John Richels, Devon's President. "With aggregate pre-tax proceeds of the announced transactions surpassing $3 billion, the divestiture results have exceeded our expectations."