UK energy giant BP has announced it is to enter the deepwater offshore Brazilian oil-exploration market by buying assets owned by US oil and gas producer Devon Energy in a deal valued at US$7bn. Under the terms of the deal, BP will acquire assets in Brazil which include interests in 10 exploration blocks in Brazil, including seven in the prolific Campos basin. Discoveries over the past decade have suggested that Brazil could be one of the biggest oil producers in the world. Other firms have been in Brazil for years. US giant ExxonMobil started exploring in 1999, for example. Most of the Brazilian oil fields are deep underwater, making the cost of extraction high. But oil producers are attracted by the size of the fields, suggesting the potential for large profits. “This strategic opportunity fits well with BP’s operating strengths and key interests around the world, offering us significant additional long-term growth potential with an emphasis on high-margin oil,” said BP group chief executive Tony Hayward.