Devon Energy has signed an agreement with Canadian Natural Resources to sell its conventional assets in Canada, for around C$3.125bn ($2.8bn).

Devon has excluded its Horn River, Lloydminster and thermal heavy oil assets from the sale, which are also situated in Canada.

The proved reserves associated with the divestiture totaled around 170 million barrels equivalent, as of 31 December, 2013.

The transaction, which is expected to complete in the second quarter of 2014, is subject to customary terms and conditions.

Devon plans to immediately repatriate the proceeds to the US for use in the repayment of debt incurred to finance its Eagle Ford acquisition, upon close of the transaction.

Devon Energy president and CEO John Richels said the agreement represents a significant step forward in the execution of non-core divestiture process.

"This tax-efficient transaction provides for a clean exit from our Canadian conventional business at a value of nearly 7 times 2013 EBITDA, a substantial premium compared to Devon’s current trading multiple," Richels added.