Boston, MA 06/16/2014 (wallstreetpr) – Chevron Corporation (NYSE:CVX) on June 13, 2014 announced that Chevron Global Energy Inc., the subsidiary of the company, sold 25% non-operated interest in southern Chad. The interests were sold in a producing oil concession in Chad. Additionally, the subsidiary also sold export pipeline interests to Chad in a deal worth $1.3 billion. The sale was closed on June 13, 2014.
Assets Sold In The Transaction
The Chevron Corporation (NYSE:CVX), in its transaction sold Chevron Global Energy Inc.’s seven fields in the Doba Basin of Chad. The average net daily crude oil production at the Doba Basin in the year 2013 was around 18000 barrels.
Apart from this, the company also sold around 21% of Chevron Global Energy Inc non-operated interest in a pipeline system which was meant for transportation of crude oil to Cameroon Coast and other related marine facilities.
Statement From The Leaders
The Chairman of Chevron Corporation (NYSE:CVX), George Kirkland explained that the sale was a part of strategy which focused on management of the company’s portfolio in order to maximize global upstream businesses’ value.
The President of Chevron Africa and Latin America Exploration and Production Company, Ali Moshiri said that the assets which have been sold had played a crucial role for Chevron in Africa from last 14 years and that these assets had remained a profitable section of the company’s portfolio for several years in the past. However, he added, this was the perfect time for divestiture, given the combination of present market conditions as well as the size of the assets relative to company’s portfolio.
The Chevron Corporation (NYSE:CVX) still continues to have a partnership with Texas A&M, where it offers funding for the scholarships, research centers, laboratories as well as fellowships across the campus.