ChevronTexaco planning western Canadian divestitures

ChevronTexaco Corp. plans to evaluate opportunities to divest certain producing and midstream assets in western Canada.

Dec. 10, 2003

2 min read

By OGJ editors
HOUSTON, Dec. 10 -- ChevronTexaco Corp. plans to evaluate opportunities to divest certain producing and midstream assets in western Canada.

The divestitures will be in addition with the company's previously announced plans to sell its interests in additional nonstrategic US producing properties and to realign strategic business units. Longterm, ChevronTexaco expects to retain 400 core fields.

Ray Wilcox, vice-president of ChevronTexaco and president of ChevronTexaco Exploration and Production Co., said, "These efforts are part of our strategy to maximize and grow the value of our base business. We expect to retain nearly all of our current earnings, cash flow, and resource base, and to improve our overall competitiveness."

The US properties for sale are in 15 states and the Outer Continental Shelf of the Gulf of Mexico. They represent more than 60% of ChevronTexaco's total US properties but only 5 percent of daily production. Most of these properties are nonoperated joint ventures and royalty-only interests.

The Canadian assets being considered for divestment involve mature producing fields and midstream assets in western Canada that currently are producing 35,000 boed. The decision will not affect strategically significant assets, the company said.

The divestment program and some office function consolidations are expected to be completed in 2004. An estimated 150-200 jobs will be eliminated as a result of the US portfolio decisions. Personnel changes in Canada will be determined based on the disposition of specific western Canada producing and midstream assets.