ChevronTexaco wants to sell interests in Papua New Guinea joint ventures

ChevronTexaco Corp. wants to sell its interests and resign operatorship of its Papua New Guinea joint venture as part of its drive to focus on assets more aligned with strategic growth objectives.

April 22, 2003

2 min read

By OGJ editors

HOUSTON, Apr. 22 -- ChevronTexaco Corp. wants to sell its interests and resign operatorship of its Papua New Guinea joint venture as part of its drive to focus on assets more aligned with strategic growth objectives.

The major is putting all its oil and gas production interests in Kutubu, Moran, Gobe Main, and South East Gobe oil fields in Papua New Guinea's Southern Highlands Province on the sales block.

The joint venture produces 53,000 b/d of oil. Completion of sale and appointment of an operator are expected by Oct. 31, ChevronTexaco said.

ChevronTexaco, through its subsidiary Chevron Niugini Ltd (CNGL) holds equity interests in the Kutubu, Moran, Gobe Main and South East Gobe fields, an exploration license, and two petroleum retention licenses.

ChevronTexaco Vice-Chairman Peter Robertson said, "The decision to conclude our business in Papua New Guinea was a very difficult one given the outstanding relationship the company has been privileged to enjoy over 2 decades with the people and government."

CNGL and its joint venture partners have invested more than $2.9 billion in exploration, development, and production, Robertson said.

Associated gas reserves from the operating oil fields make this sale particularly attractive to companies interested in future gas projects in Papua New Guinea, he said.