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Chevron (CVX) Might Sell its Thai Gas Field Stake for $500M

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Chevron Corporation (CVX - Free Report) , one of the largest integrated energy companies in the world, is planning to divest its Thailand based Arthit gas field stake valued at $500 million, going by Bloomberg.

This reflects the company’s intention to sell some Asian properties as the business scenario has not been in favor due to the prolonged weakness in crude. Data wise, although crude has crossed the $50-per-barrel level for the first time this year, the commodity is nowhere near its above-$100-per-barrel level two years back.  

Per the report, Chevron might sell its 16% interest in the Arthit field to PTT Exploration & Production Pcl of Thailand. It is to be noted that PTT Exploration & Production is the operator of the field with an 80% interest. Other Asian properties that Chevron is willing to divest include an oil and natural gas field in Indonesia. The report also stated that the integrated player is planning to sell geothermal assets in Asia that could fetch the company almost $3 billion.

In a separate development, Chevron has been forced to shut down its onshore operations in Nigeria after Niger Delta Avengers, a terrorist group, attacked the company’s Escravos terminal. The militant group bombed the facilities’ main electricity power line. It is to be noted that Escravos crude production has already slipped by 90,000 barrels per day following the current and prior attacks.   

San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas companies in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.

Currently, the company carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.

Some better-ranked players in energy sector are McDermott International Inc. , PetroChina Co. Ltd. and TC PipeLines, LP . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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