Chevron to Put Duvernay Shale Gas Assets for Sale

SEATTLE (Oil Monster): Chevron announced its decision to put its natural gas assets in Duvernay, Canada for sale. The move is part of efforts by the company to restructure its global operations. The assets, spread over 950 square kilometres is capable of producing nearly 40,000 barrels of oil and gas every day.

The company has been making significant investments in key assets over the recent times. It has already entered into certain strategic deals with Hess Corp , PDC Energy and Noble Energy, aimed at expanding its oil and gas output. Meantime, the other Canadian operations are expected to continue unaffected.

Chevron has announced plans to allocate more than three-fourths of its total upstream capital expenditures on U.S. shale basins, the Gulf of Mexico, the Eastern Mediterranean, Guyana, Australia and Kazakhstan. This follows the recently announced deal with Hess, which is pending regulatory approvals and is expected to close during H2 this year.

The company spokesperson noted that the Duvernay business holds significant value in terms of current production as well as potential growth opportunities. The assets will be attractive to companies having complementary portfolios, he added.

Analysts too stated that the assets have started to become a key focus for the industry and that it will attract significant investors’ attention.

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