Chevron Corp. (CVX), the world’s second largest U.S. oil company, is gearing up to sell $5 billion of its Asian assets, according to the Wall Street Journal. Hurt by low oil prices, Chevron now is strapped for cash and moving quickly to adapt to a a world of lower profits and revenue. The sale is of its offshore-China assets is only one in a series of Asian divestments as Chevron seeks to cut costs companywide. (Also, read: What a $20 USD Barrel Means For the US Oil Industry.)
$10 Billion Sales Goal
On a larger scale, Chevron announced in October of last year that it seeks to raise up to $10 billion from asset sales by 2017. The sale of the company’s Asian assets is set to start this month, according to the Journal, which quoted people familiar with the plan. Assets to be sold include Chevron’s joint ownership stake worth $1 billion with China’s state-owned oil company, CNOOC Ltd., in an offshore oil field. Potential bidders for the asset include a long list of Chinese energy companies and sovereign funds. Chevron also is hoping to sell its Indonesian geothermal assets for at least $2 billion. Gas fields in Thailand are also on the block.