Devon Energy has said that it has agreed to sell its producing Panyu field located offshore China to China National Offshore Oil for $515m, or approximately $370m after tax.

During 2009, Devon’s production from the Panyu field was approximately 12 thousand barrels of oil per day.

Larry Nichols, chairman and CEO of Devon, said: “Since announcing our plans this past November to strategically reposition the company to focus on its world-class North American onshore assets, we have divested nearly $10bn of Gulf of Mexico and international assets.

“This translates into an estimated $7.9bn in total after-tax proceeds, easily exceeding the top end of our initial expectations of $4.5 to $7.5 billion.”

Completion of the transaction is subject to customary closing conditions and regulatory approvals. The company has now revealed the sale of the majority of the divestiture assets. The divestiture process is ongoing for Devon’s remaining exploration assets in China and Angola, as well as other minor international assets.

Devon expects the closings of all divestitures to be completed prior to year-end.