Chevron Corporation (NYSE: CVX) today announced that its subsidiary, Chevron Global Energy Inc., has sold its 25 percent non-operated interest in a producing oil concession in southern Chad and the related export pipeline interests to the Republic of Chad for approximately $1.3 billion. The sale closed June 13.
"This sale demonstrates our focus on strategically managing our portfolio to maximize the value of our global upstream businesses," said George Kirkland, vice chairman of Chevron Corporation.
"These assets have played a significant role for Chevron in Africa for the past 14 years," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company. "They have been a profitable part of our portfolio for many years. The combination of current market conditions and the size of the assets relative to our portfolio make this an ideal time for a divestiture."
The transaction includes the sale of the Chevron subsidiary's interests in seven fields in Chad's Doba Basin, which in 2013 had an average net daily crude oil production of about 18,000 barrels. The sale also includes the Chevron subsidiary's approximate 21 percent non-operated interest in a pipeline system that transports crude oil to the coast of Cameroon as well as associated marine facilities.
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif.