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Chevron seeks to sell Equatorial Guinea oil and gas assets -sources -Breaking


© Reuters. A 3D printed pure gasoline pipeline is positioned in entrance of displayed Chevron brand on this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration

By Ron Bousso and David French

LONDON (Reuters) – Chevron (NYSE:) is seeking to promote its stakes in three oil and gasoline fields in Equatorial Guinea, hoping a latest rally in power costs will assist entice patrons, three trade sources instructed Reuters.

The U.S. firm acquired the belongings within the west African nation as a part of the $13 billion acquisition of Noble Vitality (NASDAQ:) in 2020.

Chevron has employed funding financial institution Jefferies to run the sale course of which might elevate as a lot as $1 billion, the sources mentioned.

Chevron declined to remark. Jefferies declined to remark.

The choice to promote the Equatorial Guinea belongings comes as Chevron focuses on its most worthwhile manufacturing hubs together with the U.S. Permian shale basin and Kazakhstan, the sources mentioned.

With oil costs at their highest in seven years and a powerful demand outlook, the world’s high oil and gasoline corporations are hoping to draw smaller patrons, reminiscent of personal equity-backed producers, to ageing and non-core belongings.

Chevron holds a 38% curiosity within the Aseng oilfield and the Yolanda subject in Equatorial Guinea’s Block 1 in addition to a forty five% curiosity within the Alen gasoline and condensate subject in Block O. It operates the three fields.

The corporate expanded its presence in Equatorial Guinea in December when it signed a production-sharing settlement for an offshore block within the Douala Basin.

The Equatorial Guinea belongings added 441 billion cubic toes of pure gasoline to Chevron’s reserves in 2020, in line with its annual report.

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