Storms lead snags in output by Devon
ENERGYField in Azerbaijan faces problems with equipment

From Staff Reports

Published: October 7, 2008

Devon Energy Corp. is cutting production for the remainder of this year because of storm damage and equipment downtime, the company said Monday.

Devon lost its offshore Gulf of Mexico production as it prepared for Hurricanes Gustav and Ike. So far, Devon only has been able to restore a little more than half of what it had been producing there.

It also lost a significant amount of onshore production along the Gulf Coast, although that has been restored, the company said.

Devon revised its worldwide production for the third quarter lower, to about 59 million barrels of oil equivalent from previously forecast production of about 61 million.

About two-thirds of that is because of the hurricanes and typhoons in the South China Sea, officials said.

Fourth-quarter production also was revised downward, to about 62 million barrels of oil equivalent from about 64 million. About two-thirds of that reduction also was attributed to weather issues, Devon said.

The remainder of production cuts in both quarters are being caused by equipment problems at the ACG field in Azerbaijan. The company did not say how the production cuts would impact Devon financially.

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