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September 6, 2021

Chevron considers divestment of Eagle Ford Basin assets

The assets to be divested delivered a net production of 30,300 barrels of oil equivalent per day this year.

By Aninda Chakraborty

Chevron is reportedly planning to divest its oil and gas assets in the Eagle Ford Basin in the US state of Texas, a move that will further streamline its upstream operations.

This was reported by Reuters citing sources familiar with the matter and a marketing document. Later, a company spokesperson also confirmed that Chevron is marketing the assets for sale.

The company estimates that the total proved developed resources in the marked assets will be worth around $1bn, considering oil and gas prices at $70 and $4 respectively. This will value the divestment at around $3.8bn, the news agency added citing the marketing document.

Chevron’s Eagle Ford assets include an area of around 30,440 net acres. The company received this portfolio as part of its acquisition of Noble Energy last year.

This year, the assets delivered a net production of 30,300 barrels of oil equivalent per day, of which 45% were natural gas.

Sources told Reuters that Chevron may receive bids between $1bn and $2bn for the assets.

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Headquartered in California, Chevron is one of the largest oil companies in the US.

The company reported a net income of $3.1bn in the second quarter of 2021, compared to a loss of $8.27bn in the prior-year quarter.

The turnaround was driven by growing petroleum products demand and a surge in oil and gas prices.

During the quarter, Chevron’s net oil-equivalent production stood at 3.13 million barrels per day, up 5% compared to the same quarter a year ago.

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