Chevron to sell US$5bn of assets in Asia

US OIL giant Chevron is selling some of its assets in Asia worth US$5bn, according to the Wall Street Journal (WSJ), which cites sources familiar with the matter.

The company is set to sell offshore assets in China as part of its divestment plans there, including its US$1bn stake in an offshore field with the country’s state-owned oil company CNOOC.

WSJ also reported that Chevron is looking for buyers for its geothermal assets in Indonesia, considering bids over US$2bn. Natural-gas field assets in Thailand are part of the divestment plans, according to the sources.

The company said in October 2015 it was looking to raise US$10bn from asset sales by 2017. A large chunk of which will come from its Asia upstream operations, say the sources. Chevron reported a US$1.5bn loss in July. Analysts say the plans are part of a wider decision to cut costs and adapt to lower oil prices.

Chevron has made a series of divestments in the last two years including: selling 75% of its South African business unit in February, selling its stake in the New Zealand Oil Refining company in June 2015, and selling its 50% stake in Caltex, Australia.

In July, the company also approved a US$36.8bn expansion of the Tengiz oilfield in Kazakhstan, a joint venture in which Chevron has controlling interest. This was the largest single investment by the sector since the oil-price crash in 2014.

A Chevron spokesperson told The Chemical Engineer that “Chevron does not discuss specific rumour or speculation concerning mergers, acquisitions, or divestitures of Chevron assets.”