Chevron is seeking to sell its stakes in three oil and gas fields in Equatorial Guinea, hoping a recent rise in energy prices will help attract buyers, three industry sources told Reuters.
The American company acquired the assets in the West African country as part of the acquisition of Noble Energy for $13 billion in 2020.
Chevron has hired investment bank Jefferies to handle the sale process which could raise up to $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 centers, including the U.S. Permian shale basin and Kazakhstan, the sources said.
With oil prices at their highest level in seven years and strong demand prospects, the world’s largest oil and gas companies are hoping to lure smaller buyers, such as private capital-backed producers, into aging assets. and not essential.
Chevron owns a 38% interest in the Aseng oil field and the Yolanda natural gas field in Block 1 in Equatorial Guinea as well as a 45% interest in the Alen gas and condensate field in the block O. It operates the three fields.
The company strengthened its presence in Equatorial Guinea by signing a production sharing agreement in December for an offshore block in the Douala basin. Read more
Equatorial Guinea assets added 441 billion cubic feet of natural gas to Chevron’s reserves in 2020, according to its annual report.
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Posted: 21-02-2022