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Chevron Corp is advertising and marketing its curiosity in additional than 2,000 oil and gasoline wells in Alaska, the corporate informed Reuters on Monday, in a transfer that might mark the oil main’s second exit from oil manufacturing within the state in three many years.
One of many earliest corporations to prospect for oil in Alaska, Chevron helped develop the state’s oil business final century however later exited output there in 1992. It returned a decade later with its $20 billion buy of Unocal.
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The corporate is providing stakes in three oilfields, it confirmed. It holds round 10% in Alaska’s Endicott subject, 5% in Kuparuk subject and 1.2% in Prudhoe Bay. Bids are due this month. The stakes are non-operating pursuits that present a share of earnings.
A sale might fetch between $450 million and $550 million, in accordance with a Rystad Power analyst utilizing comparable transactions.
If a sale materializes, Chevron would comply with within the steps of BP Plc, which in 2020 offered its producing property to closely-held Hilcorp for $5.6 billion and exited. Exxon Mobil individually transferred operations of Level Thomson oilfield to Hilcorp final yr however retains a majority stake.
The properties provided embrace pursuits in pipelines within the Kuparuk and Endicott fields, in accordance with three individuals aware of the matter who requested anonymity to debate confidential info.
ConocoPhillips operates the Kuparuk subject, whereas Hilcorp operates Prudhoe Bay and Endicott, and both might bid on the property, two of the sources mentioned.
ConocoPhillips declined to remark. Hilcorp didn’t instantly reply to requests for remark.
The oilfields that Chevron is providing produce round 9,400 barrels of oil and gasoline per day. General manufacturing within the state has been declining since a peak in 1988 when output exceeded greater than 2 million barrels of oil a day.
In 2021, Alaska produced 437,000 barrels of oil a day, the bottom since 1976, in accordance with U.S. authorities information. (Reporting by Shariq Khan in Bengaluru; Enhancing by Josie Kao)