Chevron on Jan. 19 said it will put its Alberta, Canada, shale-gas business up for sale as it continues to streamline global operations following several big acquisitions.
The company produces about 40,000 bbl of oil and gas from its 70% interest in about 235,000 acres in Alberta's Duvernay field, according to its website.
The assets could fetch over $500 million, according to an analyst familiar with the company's operations.
Chevron has said it plans to offer between $10 billion and $15 billion in assets following deals with Hess Corp., PDC Energy and Noble Energy that will significantly expand its oil and gas output.
"We have a strong position and are proud of our performance in the Duvernay," a spokesperson told Reuters. "The business holds significant value in both its current production as well as potential growth opportunities, which we expect to be attractive to other companies with complementary portfolios."
The company's other Canadian operations are unaffected, the spokesperson said.
Chevron first announced plans to develop the East Kaybob region of the Duvernay play in Alberta in 2017 after three years appraising the area. At the end of 2022, 243 wells in the field had been tied into production facilities.
Recommended Reading
Chevron, in Hess Holding Pattern, Sells $6.8B in Alaska, Canada
2024-10-08 - Chevron Corp., waiting to close a $55 billion takeover of Hess Corp., is selling off non-core assets in Canada and Alaska.
Hess Goes Forth in Bakken with Chevron Deal Entangled in Dispute
2024-10-30 - Waiting to close a $55 billion sale to Chevron, Hess Corp. plans to continue running four rigs in the North Dakota Bakken shale play through the fourth quarter.
‘Worried’ E&Ps Keep Merging as Shale Ages, Costs Rise—Kimmeridge
2024-10-11 - With just half as many public E&Ps around today as there were in 2017, Kimmeridge and Managing Partner Ben Dell think the E&P space still has—and needs—plenty more M&A.
Chevron Closes $6.5B Sale of Canadian Oil Sands
2024-12-10 - Canadian Natural Resources Ltd. completed its $6.5 billion deal to acquire Chevron’s Canadian oil sands assets as well as a 70% stake in Duvernay Shale assets.
PEDEVCO Teams Up with Denver E&P To Develop D-J Basin Acreage
2024-10-01 - PEDEVCO is teaming up with a private equity-backed Colorado operator to jointly develop the SW Pony Prospect in Weld County, Colorado.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.