Chevron Eyes Sale Of Canada's Duvernay Shale Gas Assets To Trim Portfolio: Report

On Friday, Chevron Corp CVX reportedly disclosed that it is putting its natural gas business in Canada’s Duvernay Shale for sale.

The move comes as a part of its efforts to streamline global operations following several big acquisitions, reported Reuters.

The assets produce around 40,000 barrels of oil and gas daily from about 235,000 acres (951.01 square kilometers) in the Duvernay field in central Alberta and could fetch up to $900 million, as per the Houston-based advisory firm Energy Advisors Group, which the report cited.

Following its deals with Hess Corp HES, PDC Energy, and Noble Energy, Chevron stated it plans to offer around $10 billion and $15 billion in assets by 2028.

Related: FTC Seeks More Information On Chevron & Hess Deal; Chevron Chalks Out 2024 Capex Budget

“We have a strong position and are proud of our performance in the Duvernay. 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,” a spokesperson told Reuters.

Notably, Chevron initially announced plans to create the East Kaybob region of the Duvernay play in Alberta in 2017 after three years of appraising the area. The oil giant has 243 wells in the field tied into production facilities as of 2022.

Also Read: Oil Giant Chevron’s Golden State Setback: To Incur Up To $4B Charge in Q4 Over California Challenges

Chevron will report fourth quarter FY24 results on February 2, 2024. 

Price Action: CVX shares are trading lower by 0.04% at $142.20 premarket on the last check Monday.