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Chevron Reportedly Adds Its Myanmar Assets To The Selling Block

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According to a report by Reuters, Chevron Corporation (NYSE: CVX) is looking to shed its Myanmar gas block assets, which could be worth $1.3 billion.

Reuters, citing "banking sources familiar with the matter," said that potential buyers for Chevron's assets include Australia's Woodside Petroleum, Thailand's PTT Exploration and Production, among Japanese trading houses and Chinese companies.

Chevron's net daily natural gas production in Myanmar averaged 117 million cubic feet in 2015. Accordingly, a $1.3 billion price tag on any deal would also mark the largest M&A transaction involving Myanmar.

Chevron is already shopping its Asian Geothermal assets and is already drawing attention from potential buyers. The company pledged to shed non-core assets due to declining oil prices and preserve cash.

Related Link: Report: Chevron's Asian Geothermal Assets Drawing Attention From Potential Buyers

"Companies understand that Myanmar is in a very good position as you have export markets like China and Thailand and a growing domestic market," Adrian Pooh, a Singapore-based analyst at energy consultancy Wood Mackenzie told Reuters. "It's kind of one of the last few remaining exploration plays with good prospects as well."

Shares of Chevron were trading lower by nearly 2 percent early Monday morning, likely in reaction to Sunday's meeting of OPEC and non-OPEC nations, which ended without any agreement.

Posted-In: Adrian Pooh Chevron Chevron Asia Geothermal Chevron Asset SalesNews Commodities M&A Markets

 

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