June 21, 2024

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Chevron is offering to sell its oil and gas properties in New Mexico, Texas

Chevron is offering to sell its oil and gas properties in New Mexico, Texas

HOUSTON (Reuters) – Chevron Corp. (CVX.N) is offering to sell several oil and gas properties in New Mexico and Texas, according to marketing documents seen by Reuters, as the U.S. oil major looks to offload land after major shale acquisitions. . .

The second largest US oil and gas producer agreed last month to buy shale oil company PDC Energy Inc (PDCE.O) in a $7.6 billion equity and debt deal. In 2020, it acquired Noble Energy in a move that boosted its international shale oil and gas holdings.

Chevron has divested real estate in the Permian Basin of West Texas and New Mexico, where it is the largest publicly traded oil and gas producer and largest owner of real estate at 2.2 million acres.

This month, it launched an auction for a parcel covering 2,134 net acres in New Mexico and a second parcel covering 29,901 acres in New Mexico and Texas, according to listings on the EnergyNet online auction site.

The total value is around $100 million, according to a source familiar with Shale’s asset values. Both bids are due on July 27, according to marketing brochures.

Chevron did not respond to requests for comment.

Production in the larger parcel on offer was estimated at about 770,000 barrels of net oil and gas, and the smaller parcel was estimated at 1,818 barrels of oil and gas equivalent (boe) per day, according to the documents.

(Reporting by Arathi Somasekhar) from Houston

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