Drilling/Production DOE seeks adviser for Elk Hills sale

The U.S. Department of Energy has begun searching for an adviser to help it sell its interest in Elk Hills oil field, about 35 miles west of Bakersfield, Calif. President Clinton recently signed a Defense Department spending bill that contained a provision allowing the field to be sold. Elk Hills is among the nation's 11 largest oil fields and 10 largest gas fields in the U.S. Originally a Naval Petroleum Reserve, the U.S. government began producing the field in the mid-1970s. Chevron Corp.

Feb. 26, 1996

2 min read

The U.S. Department of Energy has begun searching for an adviser to help it sell its interest in Elk Hills oil field, about 35 miles west of Bakersfield, Calif.

President Clinton recently signed a Defense Department spending bill that contained a provision allowing the field to be sold.

Elk Hills is among the nation's 11 largest oil fields and 10 largest gas fields in the U.S. Originally a Naval Petroleum Reserve, the U.S. government began producing the field in the mid-1970s. Chevron Corp. owns a 22% in the field.

DOE plans to invite top applicants for the adviser's role to briefings at Elk Hills field Mar. 6-8.

Each respondent is required to submit a proposed sale strategy by Mar. 27 and explain it in presentations Apr. 1-3. DOE plans to choose its adviser Apr. 9.

To qualify, a respondent must be an investment banker or equivalent financial adviser that operates in the U.S. and has participated, since Jan. 1, 1993, in at least one U.S. or international oil or natural gas property sales transaction with a total value greater than $200 million. Certain organizational conflict of interest requirements also must be satisfied.

The adviser will receive a fee based on a percentage of the sale value. The sale is estimated to bring the government $1.5-2 billion.