Chevron Corp. is looking to sell its stakes in three oil and gas fields in Equatorial Guinea, hoping a recent rally in energy prices will help attract buyers, three industry sources recently told Reuters.
The U.S. company acquired the assets in the west African country as part of the $13 billion acquisition of Noble Energy in 2020.
Chevron has hired investment bank Jefferies to run the sale process which could raise as much as $1 billion, the sources said.
Chevron declined to comment. Jefferies declined to comment.
The decision to sell the Equatorial Guinea assets comes as Chevron focuses on its most profitable production hubs including the U.S. Permian shale basin and Kazakhstan, the sources said.
With oil prices at their highest in seven years and a strong demand outlook, the world’s top oil and gas companies are hoping to attract smaller buyers, such as private equity-backed producers, to ageing and noncore assets.
Chevron holds a 38% interest in the Aseng oil field and the Yolanda natural gas field in Equatorial Guinea’s Block 1 as well as a 45% interest in the Alen gas and condensate field in Block O. It operates the three fields.
The company expanded its presence in Equatorial Guinea in December when it signed a production-sharing agreement for an offshore block in the Douala Basin.
The Equatorial Guinea assets added 441 Bcf of natural gas to Chevron's reserves in 2020, according to its annual report.
Recommended Reading
Yellen Expects Further Sanctions on Iran, Oil Exports Possible Target
2024-04-16 - U.S. Treasury Secretary Janet Yellen intends to hit Iran with new sanctions in coming days due to its unprecedented attack on Israel.
The Problem with the Pause: US LNG Trade Gets Political
2024-02-13 - Industry leaders worry that the DOE’s suspension of approvals for LNG projects will persuade global customers to seek other suppliers, wreaking havoc on energy security.
BWX Technologies Awarded $45B Contract to Manage Radioactive Cleanup
2024-03-05 - The U.S. Department of Energy’s Office of Environmental Management awarded nuclear technologies company BWX Technologies Inc. a contract worth up to $45 billion for environmental management at the Hanford Site.
Belcher: Our Leaders Should Embrace, Not Vilify, Certified Natural Gas
2024-03-18 - Recognition gained through gas certification verified by third-party auditors has led natural gas producers and midstream companies to voluntarily comply and often exceed compliance with regulatory requirements, including the EPA methane rule.
CERAWeek: Energy Secretary Defends LNG Pause Amid Industry Outcry
2024-03-18 - U.S. Energy Secretary Jennifer Granholm said she expects the review of LNG exports to be in the “rearview mirror” by next year.