Devon Energy said it has completed the sale of its 50% ownership interest in the Access Pipeline to Wolf Midstream.
The deal has been done for $1.1billion.
The company said it will also have the right to receive an incremental $150million payment from Wold Midstream, with the sanctioning and development of a new thermal-oil project on Devon’s Pike lease in Alberta, Canada.
The sale agreement further allows for Access Pipeline tolls to be reduced by as much as 30 percent with the future development of multiple projects at Pike.
With the close of Access Pipeline, Devon’s divestiture program is now complete with total proceeds reaching USD $3.2 billion.
At least two-thirds of the sales proceeds are expected to be utilised for debt reduction, with $1.2 billion of debt repurchased to date.