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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Offshore Technology.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.