EXCLUSIVE Chevron to sell Permian assets valued at over $ 1 billion – sources

June 30 (Reuters) – Chevron Corp (CVX.N) is looking to sell two collections of conventional oil and gas fields in the Permian Basin valued at more than $ 1 billion combined, three sources told Reuters.

U.S. oil futures have climbed more than 50% so far this year, prompting companies to try and sell assets in the Permian Basin of Texas and New Mexico, the country’s largest oil field. . Chevron is looking to sell lower value assets, while some majors, such as Royal Dutch Shell, are considering pulling out of training altogether.

Shell seeks to exit the Permian to invest in the energy transition, while Chevron wishes to invest only in the best performing assets.

Chevron has retained an investment bank to market some Permian oil and gas fields valued at $ 879 million, and has additional assets of more than $ 200 million available for sale elsewhere in the basin, said the sources.

Initial offer proposals were slated for June 10, with a sale date slated for July 1 for the larger set. The assets are operated by Chevron and Occidental and span 57,000 net acres with production of approximately 10,100 barrels of oil equivalent per day.

The company did not immediately respond to requests for comment.

Together, the assets that Chevron markets could bring in as much as $ 1.2 billion, based on the strength of oil futures, according to one of the people.

Chevron has valued other assets in the Permian and elsewhere, one of the people said, and may divest older assets during the year as it seeks to boost investment in the energy transition.

Chevron has previously said it is fine-tuning its oil holdings.

Reporting by Arathy S Nair and Shariq Khan in Bengaluru, Jessica Resnick-Ault in New York and Gary McWilliams in Houston; Editing by David Gregorio Editing by Sriraj Kalluvila and Matthew Lewis

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