Chevron Seeks Profitability Shift with Sale of Congo Operations for $1.5B

Author: Nabaparna Bhattacharya | May 25, 2023 08:50am

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.
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