Chevron Seeks Profitability Shift with Sale of Congo Operations for $1.5B
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- Chevron Corporation (NYSE:CVX) plans to sell its oil and gas assets in Congo to focus on more profitable production.
- The Congo assets could fetch up to $1.5 billion, Reuters reported citing two sources close to the process.
- The plan to sell its Congo-based operations is because the energy behemoth wants to shift its focus more towards newer operations and more profitable production.
- The report added that Chevron received bids for the assets this week.
- "Chevron does not comment on rumors or speculations about its commercial activity, including potential acquisitions or divestitures, which is in a constant state of review," the company said in a statement.
- Chevron operates in the Republic of Congo through its subsidiary Chevron Overseas (Congo) Limited. Chevron has a 31.5 percent non-operated working interest in the offshore Haute Mer permit areas (Nkossa, Nsoko and Moho Bilondo).
- In 2020, Chevron's operations had an average net daily production of 49,000 barrels of liquids in Congo.
- The company has recently inked a pact to acquire PDC Energy, Inc. (NASDAQ:PDCE) in an all-stock deal worth $7.6 billion, including debt.
- Also Read: Chevron Q1 Performance: Flat Production and Lower ASP, Higher Downstream Earnings with High Refined Product Margins
- Price Action: CVX shares are trading lower by 0.79% at $156.02 on the last check Thursday.
- Photo via Wikimedia Commons