Chevron’s Vietnam division sells off its assets to PetroVietnam.
Chevron Corporation (NYSE:CVX) is in the process of completing its largest seismic data analysis to decipher its feasibility before giving the green signal to conduct its oil hunt in Australia, a sign that it is taking a long-term stance on the country’s strong LNG potential boom that is likely to replace present fuels in the future.
The US oil and gas major, as well as a downstream refiner, will now analyze the data before determining whether drilling for oil in the Great Australian Bight might be a good idea at all, though BP has also conducted a similar seismic survey three years ago and is now considering the possibility of drilling over the same region that Chevron is planning to explore by October of next year.
The decision to go ahead with this plan comes as the company faces the headwinds from low oil prices that have led to most oil majors slowing down their projects, while completing existing ones that had been in the pipeline before. However, the corporation possesses a healthy balance sheet due to its vertical and horizontal operations that ranges from exploration and production to downstream refining.
Meanwhile, not too far away from Australia, in the region of South Asia, the San Ramon, CA-based oil and gas major has stated that its assets in Vietnam has been acquired by state oil and gas company, PetroVietnam, as the country seeks to boost its own gas output due to surging demand from its growing economy.
Under the terms of the deal signed between the two sides yesterday, PetroVietnam will acquire Chevron’s stake from three major offshore blocks and a gas pipeline project that links from the north to southern Vietnam.
The move will likely be beneficial to the company since it does not have to commit to investing in new infrastructure. It will also help in accelerating the development of the oil field to make it available more quickly. However, PetroVietnam has not disclosed the value of the acquisition, and the same was the case with Chevron, which did not respond to comments about the value of the sale.
Global developments, such as the low oil prices, have forced the company to look more at home, in order to reduce its exposure and risks from the development of oil fields. It is eyeing the possibility of sealing off at least a 40% stake in a joint venture with Venezuela.
Chevron Corporation’s stock price ended the day at $99.74, a decline of 0.30% since the previous day.
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