US-based Chevron is reportedly planning to sell stakes in three oil and gas fields, in Equatorial Guinea, to benefit from higher energy prices.

The potential sale may raise as much as $1bn, reported Reuters, citing industry sources.

To run the sale process, the firm hired investment bank Jefferies.

Chevron holds a 38% stake in the Aseng oil field, and the Yolanda natural gas field, in Equatorial Guinea’s Block 1. It also owns a 45% interest in the Alen gas and condensate field in Block O.

The firm serves as operators for these three fields.

The company received the three assets as part of the $13bn acquisition of Noble Energy, in 2020.

As per Chevron’s annual report, the acquisition of the Equatorial Guinea assets added 441 billion cubic feet of natural gas to its reserves in, 2020.

The decision to sell the assets in the African country comes as the company intends to focus on its most profitable production hubs, including the US Permian shale basin, and Kazakhstan.

Chevron and Jefferies have declined to comment on the Reuters report.

Major oil and gas companies are considering selling ageing and non-core assets to smaller buyers, such as private equity-backed producers, to benefit from strong demand outlook and the surging oil prices.

Global crude oil prices reached their highest level since 2014 amid escalating tensions between Russia and Ukraine.

The US and its European allies could announce new sanctions against Russia after Moscow formally recognised the two regions in eastern Ukraine, reported Reuters.

Brent crude surged by $3.38, or 3.5%, to reach $98.77 while the US West Texas Intermediate (WTI) crude increased by $4.40, or 4.8%, to settle at $95.47.

Last month, Chevron reported earnings of $5.1bn in the fourth quarter of 2021.