Chevron Looking to Sell Oil & Gas Assets From Equatorial Guinea

As energy prices have recently increased, Chevron is trying to sell its shares in three oil and gas assets in Equatorial Guinea. With the purchase of Noble Energy for $13 billion in 2020, the U.S. company gained assets in West Africa.

Chevron  hired investment bank Jefferies to handle the selling process, which may raise as much as $1 billion, according to sources.

The reason why the company has decided to sell its assets in Equatorial Guinea is that it wants to concentrate on its most profitable production hubs, including the Permian shale basin in the United States and Kazakhstan, according to industry insiders.”

A solid demand forecast and high oil prices are encouraging the world’s largest oil and gas companies to seek out smaller purchasers, such as private equity-backed producers, to ageing and non-core assets.

Chevron has a 38% interest in the Aseng oil field and Yolanda natural gas site and a 45% interest in the Alen gas and condensate project in Block O in Equatorial Guinea.

In December, the business secured a production-sharing deal for an offshore block in the Douala Basin in Equatorial Guinea.

According to Chevron’s annual report, the Equatorial Guinea assets contributed 441 billion cubic feet of natural gas to the company’s reserves in 2020.

Original source material for this article taken from here