Chevron has begun marketing some of its older US Gulf fields, it confirmed to Reuters. The Chevron Gulf asset sale includes Petronius, Tubular Bells and Llano, plus stakes in several other fields. According to two people aware of the plan, it could raise about $1bn.
What is in the Chevron Gulf asset sale
First, the process is at an early stage and will take months, a spokesperson said. There is also no guarantee that deals will happen.
For example, Petronius started producing in 2000, and Chevron runs it with Talos Energy. Then Tubular Bells followed in 2014. Chevron now owns all of it, after its Hess takeover lifted its stake from 43%. Likewise, its 50% stake in Shell-operated Llano came with Hess.
Why sell now
Overall, Chevron wants US Gulf output to reach 300,000 barrels of oil equivalent a day by the end of the year. To get there, it is focusing on newer projects such as Anchor, its first ultra-high-pressure platform, and Ballymore.
Meanwhile, high oil prices support valuations. Buyers could include offshore specialists, US firms focused on the basin and other majors, the sources said.
Chevron has also been busy in the eastern Mediterranean. See our report on its Aphrodite gas deal with Egypt.
For a deeper analysis, read: Chevron Asset Sales: Why a $1bn Gulf Exit Says More About Where It Will Spend
