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Chevron Corp’s emblem is visible on their stand at Gastech, the world’s largest expo for the gas industry, on April 4, 2017 in Chiba, Japan. Toru Hanai/File Photo/REUTERS 30 JUNE (Reuters) – Three sources told Reuters that Chevron Corp (CVX.N) is trying to sell two groups of conventional oil and gas properties in the Permian Basin worth more than $1 billion. Oil futures in the United States have risen more than 50% this year, pushing corporations to want to sell assets in the Permian region of Texas and New Mexico, which is the country’s largest oil field. Chevron is considering selling lower-value assets, while some giants, such as Royal Dutch Shell, are considering leaving the group entirely. Shell wants to leave the Permian to focus on energy transition, whereas Chevron wants to focus on the best-performing assets. Chevron has hired an investment bank to sell about $879 million worth of Permian oil and gas fields, and the company has more than $200 million worth of assets for sale elsewhere in the basin, according to the sources. The first round of bid proposals was set for June 10, with the larger package set to go on sale on July 1. Chevron and Occidental run the properties, which cover 57,000 net acres and produce around 10,100 barrels of oil equivalent per day. Requests for comment were not immediately returned by the corporation. According to one of the persons, the assets Chevron is marketing might bring as much as $1.2 billion depending on the strength of oil futures. One of the persons said Chevron has been assessing additional properties in the Permian and elsewhere, and that it may sell older assets this year as it tries to increase investments in energy transition. Chevron has stated that it is fine-tuning its oil holdings in the past. Arathy S Nair and Shariq Khan in Bengaluru, Jessica Resnick-Ault in New York, and Gary McWilliams in Houston contributed reporting; David Gregorio edited the piece.
Sriraj Kalluvila and Matthew Lewis edited the piece.
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