Chevron to Sell Assets in Asia Worth Up to $5 Billion
August 04 2016 - 10:14AM
Dow Jones News
By Kane Wu and Dan Strumpf
HONG KONG -- Chevron Corp. is paring its Asia operations,
selling assets worth up to $5 billion in an effort to raise cash,
according to people familiar with the situation.
The California-based energy giant is set to begin selling its
offshore China assets this month, the latest move in a series of
divestments in Asia. The company is looking to raise up to $10
billion globally from asset sales, a big chunk of which will come
from its Asia upstream operations, as part of a broader effort to
cut costs and adapt to an environment of lower oil prices.
Among the assets Chevron is looking to sell is its stake in an
offshore oil field production venture with China's state owned oil
company Cnooc Ltd., which could fetch as much as $1 billion,
according to people familiar with the situation.
The asset could be attractive to a range potential bidders
including Chinese energy companies and sovereign funds, according
to people familiar with the situation.
Chevron is also shopping its geothermal assets in Indonesia, the
people said. The company is weighing bids worth more than $2
billion, according to one person. Geothermal energy uses steam
extracted from underground to generate electricity. It is also
selling natural gas field assets in Thailand, according to people
familiar with that deal.
The proposed sales would mark a meaningful reduction in
Chevron's footprint in oil and gas production in Asia. The company
continues to operate a natural-gas production business in
Bangladesh and onshore in China, as well as offshore production in
Indonesia.
--P.R. Venkat in Singapore contributed to this article.
(END) Dow Jones Newswires
August 04, 2016 09:59 ET (13:59 GMT)
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