Chevron has put its remaining shallow-water assets in the US Gulf of Mexico up for sale.
The company is “accelerating the sale of mature shelf properties and has begun marketing all shelf assets in the Gulf”, Chevron spokesman Cam Van Ast told NewsBase.
“The divestments will begin in 2016 and are expected to be completed by the end of 2017,” he said.
The California-based super-major said it planned to switch its focus in the Gulf to deepwater work in order to reduce expenses and boost efficiencies.
“This process is consistent with Chevron’s ongoing efforts to align its portfolio of assets with overall long-term strategies,” Van Ast added.
“Chevron is continuing to adapt to the evolving business environment by revising organisational structures,” he said, adding that the firm planned to have fewer but more complex assets in the future.
Chevron is aiming to sell US$5-10 billion of global assets by the end of 2017, Van Ast said.
The firm’s asset sale programme generated US$11.5 billion in cash by the end of 2015, he added.
In the shallow Gulf, Chevron could sell up to 27 oil and gas fields that produce around 46,000 barrels of oil equivalent per day in total.
It has been estimated that the super-major could earn over US$1 billion from potential sales. There is still thought to be a buying market for producing assets in the US.
Chevron has said that the Gulf is still a core focus area, despite weak oil prices. Chevron’s executive vice president of upstream, George Kirkland, has said that the firm anticipates significant production growth in the next two years.
Chevron said in June 2015 that it had made a new deepwater discovery at the Sicily well in the Keathley Canyon. Chevron’s partner Hess has estimated gross resource potential of 300-400 million boe at the well.
In 2014, Chevron and partner BP announced the discovery of a “significant” amount of oil with the Guadalupe wildcat.
Meanwhile, Chevron’s Jack/St Malo deepwater project, which achieved first oil in December 2014, is anticipated to ramp up production in the next few years. The company has had less luck with its Big Foot project, at which start-up has been delayed until at least 2018 while the company investigates an equipment failure at the site.