According to the Wall Street Journal, the second biggest American oil company, Chevron, is to sell properties in Asia that are worth up to $5 billion. On Thursday, the Journal reported that Chevron will begin to sell offshore China assets this month. The California-based giant is hoping to make $10 billion from sales as part of their attempt to slash costs and adjust to cheaper oil prices.
The report also stated that Chevron’s stake in an offshore oil field venture with CNOOC Ltd could raise up to $1 billion on its own. CNOOC Ltd is China’s state-owned oil company. Sources claim that this could be an attractive asset to both Chinese energy firms and sovereign funds.
In October 2015, Chevron revealed their plans to sell roughly $10 billion of properties by next year. Currently, the oil company is looking for purchasers interested in its Indonesian geothermal assets. The Journal reported that Chevron is mulling over bids above $2 billion. Allegedly, the company’s natural gas field properties in Thailand are also being prepared for sale.
A spokesperson for Chevron said that the firm doesn’t provide comment on stories from the rumor mill.
The projected sales would spell out a huge decrease in Chevron’s activity in Asian oil and gas production. Currently, the firm still operates a natural-gas producer onshore in China and in Bangladesh.
Article written by HEI contributor Briana Steptoe.