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Chevron (CVX) to Sell Rosebank Oilfield Stakes to Equinor
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Chevron Corporation (CVX - Free Report) recently inked a deal to divest its entire stake in the Rosebank oilfield to Equinor ASA (EQNR - Free Report) , in a bid to streamline its portfolio and raise funds for future domestic capital expenditure. The financial terms of the deal have been still kept under wraps.
Notably, the field is co-owned by Chevron along with Suncor Energy Inc. and Siccar Point Energy. While Chevron is the chief operator of the field with 40% stake, Suncor and Siccar hold 40% and 20% non-operating interests, respectively.
Located offshore of the Shetland Islands, Rosebank field, which is one of the major undeveloped fields in the U.K. North Sea, is expected to have recoverable volume of more than 300 million barrels. Notably, Chevron’s plan to develop the field was put on the back burner during the industry downturn. Even after the crude price rally, the Zacks Rank #2 (Buy) company is more focused to invest in the lucrative shale exploration in Permian, along with some of its major projects in the Gulf of Mexico and Kazakhstan. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, in July 2018, Chevron decided to put up many of its North Sea oil and gas assets for sale. The move was part of Chevron’s strategic review of global portfolio to determine the competitiveness of all its projects. Notably, output from North Sea accounts for about 3% of Chevron’s total production, constituting around 50,000 barrels of oil and 155 million cubic feet of natural gas a day.
The decision to offload North Sea holdings seems to be a prudent one, as extracting oil from the region is not so economical since production costs are much higher than returns. Moreover, other biggies like Bp plc (BP - Free Report) and Royal Dutch Shell plc have also jettisoned their non-core assets in the region. Early last year, Shell offloaded a large chunk of its North Sea assets to smaller rival Chrysaor Holdings Ltd. for $3.8 billion. BP also divested 25% of stake in the Magnus Field to EnQuest PLC.
Chevron, having already clinched a deal with Equinor for Rosebank properties, is yet to offload other North Sea assets like Britannia and its satellites, along with Alba, Alder, Captain, Elgin/Franklin and Erskine fields. The marketing of these properties is still at a nascent stage. If these planned sales are properly executed, the company will just be left with 19.4% interest in the Clair field for its U.K. portfolio, which is operated by BP.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
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Chevron (CVX) to Sell Rosebank Oilfield Stakes to Equinor
Chevron Corporation (CVX - Free Report) recently inked a deal to divest its entire stake in the Rosebank oilfield to Equinor ASA (EQNR - Free Report) , in a bid to streamline its portfolio and raise funds for future domestic capital expenditure. The financial terms of the deal have been still kept under wraps.
Notably, the field is co-owned by Chevron along with Suncor Energy Inc. and Siccar Point Energy. While Chevron is the chief operator of the field with 40% stake, Suncor and Siccar hold 40% and 20% non-operating interests, respectively.
Located offshore of the Shetland Islands, Rosebank field, which is one of the major undeveloped fields in the U.K. North Sea, is expected to have recoverable volume of more than 300 million barrels. Notably, Chevron’s plan to develop the field was put on the back burner during the industry downturn. Even after the crude price rally, the Zacks Rank #2 (Buy) company is more focused to invest in the lucrative shale exploration in Permian, along with some of its major projects in the Gulf of Mexico and Kazakhstan. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, in July 2018, Chevron decided to put up many of its North Sea oil and gas assets for sale. The move was part of Chevron’s strategic review of global portfolio to determine the competitiveness of all its projects. Notably, output from North Sea accounts for about 3% of Chevron’s total production, constituting around 50,000 barrels of oil and 155 million cubic feet of natural gas a day.
The decision to offload North Sea holdings seems to be a prudent one, as extracting oil from the region is not so economical since production costs are much higher than returns. Moreover, other biggies like Bp plc (BP - Free Report) and Royal Dutch Shell plc have also jettisoned their non-core assets in the region. Early last year, Shell offloaded a large chunk of its North Sea assets to smaller rival Chrysaor Holdings Ltd. for $3.8 billion. BP also divested 25% of stake in the Magnus Field to EnQuest PLC.
Chevron, having already clinched a deal with Equinor for Rosebank properties, is yet to offload other North Sea assets like Britannia and its satellites, along with Alba, Alder, Captain, Elgin/Franklin and Erskine fields. The marketing of these properties is still at a nascent stage. If these planned sales are properly executed, the company will just be left with 19.4% interest in the Clair field for its U.K. portfolio, which is operated by BP.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>