Chevron is reportedly planning to divest conventional oil and gas fields in the Permian Basin for a total of more than $1bn.

By selling lower-value conventional assets in the basin, Chevron intends to focus on high performing assets and boosting investments in energy transition, reported Reuters.

Three sources familiar with the development told the news agency that the company intends to raise $879m by selling some oil and gas fields in the Permian. An investment bank to market these fields has also been retained by the firm.

The oil company also plans to sell additional assets elsewhere in the basin for more than $200m.

Covering an area of 57,000 net acres, the assets considered for sale are operated by Chevron and Occidental Petroleum. These assets have a combined production of about 10,100 barrels of oil equivalent per day.

Chevron has already launched tender seeking bids from potential firms to purchase its assets. It also plans to launch a tender for a larger package on 1 July, reported Reuters.

According to the people, assets considered for sale under larger packages are well-positioned for implementation of carbon capture and sequestration in the long-term.

Several oil companies are mulling entirely exiting the Permian Basin operations to take advantage of the surging US oil futures, which climbed more than 50% in this year so far.

Last year, Chevron announced its plan to cut one-fifth of its capital expenditure (Capex), a sum of $4bn.

About half of this will be cut from upstream unconventionals, primarily in the Permian Basin, which lies on the border between Texas and New Mexico.