ChevronTexaco
announces sale of Western Canada assets
Posted: 25 May 2004
ChevronTexaco Corp today announced that its North America Exploration
and Production Co. has sold 13 producing fields in western Canada
to Acclaim Energy Trust and Enerplus Resources Fund for approximately
$800 million.
The company expects to record a significant gain to income upon
close of the sale, which is anticipated to occur at the end of the
second quarter or during the third quarter of this year.
The transaction includes the sale of oil and gas producing properties
in the Northwest Territories, British Columbia, Alberta and Manitoba.
"We're rationalizing our upstream portfolio to strengthen
our competitive position by selling non-strategic assets and retaining
those fields that represent long-term value for ChevronTexaco,"
said Vice Chairman Peter Robertson. "Our strategy in North
America is to streamline the portfolio to include approximately
400 core fields that account for the vast majority of current production
and cash flows."
ChevronTexaco announced last year that it was evaluating opportunities
to divest certain Canadian producing properties to improve performance
of its North America exploration and production portfolio. The company
recently announced the sale of its EnerPro Midstream Co. assets
in Alberta.
"These assets have played a significant role in our history
in Canada for the past 65 years," said Alex Archila, president
of Chevron Canada Resources. "While they have been a profitable
part of our portfolio for many years, the combination of current
market conditions and the size of the assets relative to our portfolio
makes this an ideal time for a divestiture. This sale will allow
the organization to focus its efforts on our new growth areas in
Canada."
The company's portfolio optimization program does not affect strategically
significant Canadian assets, which include: the Athabasca Oil Sands
Project; Mackenzie Delta gas, Canadian east coast exploration, development
and production activities; or the company's refining and marketing
operations.
Currently celebrating its 125th anniversary, ChevronTexaco is the
second- largest U.S.-based energy company and the fifth largest
in the world, based on market capitalization. More than 50,000 ChevronTexaco
employees work in approximately 180 countries around the world,
producing and transporting crude oil and natural gas, and marketing
and distributing fuels and other energy products. ChevronTexaco
is based in San Ramon, Calif.
For more information see www.chevrontexaco.com
Posted by Richard Price,
Editor Pipeline Magazine
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