Property And Equipment

13. Property and Equipment

See Note 22 for disclosure of Devon's capitalized costs related to its oil and gas exploration and development activities.

In November 2009, Devon announced plans to divest its offshore assets. In 2011, Devon substantially completed its planned divestiture program. In aggregate, Devon's U.S. and International sales generated total proceeds of $10 billion as presented in the following table. Assuming repatriation of a portion of the foreign proceeds under current U.S. tax law the after-tax proceeds from these transactions were approximately $8 billion.

	Cash Proceeds	Year of Divestiture
	(In millions)
Brazil (discontinued operations)	$ 3,251	2011
Gulf of Mexico (continuing operations)	4,059	2010
Azerbaijan (discontinued operations)	1,925	2010
China – Panyu and Exploration (discontinued operations)	592	2010
Other (discontinued operations)	175	2010
Total	$ 10,002

Reductions of Carrying Value

In the first quarter of 2009, Devon reduced the carrying value of its U.S. oil and gas properties $6.4 billion, or $4.1 billion after taxes, due to a full cost ceiling limitation. The reduction resulted from a significant decrease in the full cost ceiling due to the effects of declining natural gas prices subsequent to December 31, 2008.

Sinopec Transaction

In January 2012, Devon announced a transaction with Sinopec International Petroleum Exploration & Production Corporation that Devon expects to close in the first quarter of 2012. Under the agreement, Sinopec will pay $2.5 billion, including $900 million at closing and $1.6 billion toward Devon's share of future drilling costs, and will receive a 33.3% interest in five new venture exploration plays in the United States.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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