Chevron looks to sell some assets in Asia worth up to $5 bn

05 Aug 2016

US energy giant Chevron Corp, is selling some assets in Asia worth up to $5 billion, The Wall Street Journal yesterday reported, citing people familiar with the matter.

The paper said that Chevron  is set an offshore oil field venture in China with the country's state-owned oil company CNOOC Ltd, to sell this month, for up to $1 billion.

Chevron had said late last year that it plans to sell assets worth about $10 billion by 2017, in an effort to weather a global slump in energy prices.

As part of this plan, the California-based company is also looking for buyers for its geothermal assets in Indonesia worth more than $2 billion, the report added.

It may also sell its natural gas field assets in Thailand, which may fetch around $500 million.

Chevron, the largest oil producer in the US after Exxon Mobil, is restructuring by selling assets, cutting jobs and delaying drilling projects after oil prices last year fell to the lowest level in more than a decade.

Its Canadian unit is selling its Burnaby oil refinery and fuel distribution network in British Columbia and Alberta. This move comes a few months after it sold its two gas storage facilities in British Columbia, including Aitken Creek, the largest in the province, to Fortis Inc. for $266 million.

In March, it also sold off the last 497 Esso gas stations for $2.8 billion.