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Chevron (CVX) Signs 10-Year Maintenance Master Pact With AusGroup

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Chevron Corporation (CVX - Free Report) Australia has awarded AGC Industries, which is an AusGroup Ltd. subsidiary, with a 10-year significant maintenance master contract. The maintenance master contract is the longest in the Australian oil and gas industry at the moment.

Chevron Australia will order full-service asset maintenance from AGC for its onshore and offshore natural gas and oil production facilities in the north-west of Australia under the 10-year master contract.

AGC aims to provide a wide and comprehensive range of services under the contract, comprising management, planning, painting, insulation, and fireproofing, scaffolding along with engineering services, rope access, workshop management, procurement, maintenance, and more.

Shane Kimpton, CEO and managing director of AusGroup, stated, “This contract is a substantial achievement for AusGroup and confirms our proven track-record, integrity, ability and financial capacity to deliver certainty of outcome which has been central to our performance over the years.”

Earlier this week, Chevron announced its intention to halt the funding of its Kitimat LNG project in Canada as it was unable to find a prospective buyer. This decision, however, does not affect the company's other assets in the country.

Chevron-Canada announced in December 2019 that it will sell its 50% stake in the proposed Kitimat LNG Project in British Columbia. The decision was in sync with the company’s portfolio-optimization strategy aimed at maximizing returns and driving value.Also, Kitimat LNG was included in a $2.2-billion Chevron asset impairment charge in 2019. However, the company failed to obtain a potential buyer for the project.

Company Profile

Chevron is one of the largest publicly traded oil and gas companies in the world, with operations spread to almost every corner of the globe. This San Ramon, CA-based company is fully integrated, which is indicative of its participation in every energy-related aspect, right from oil production to refining and marketing.

Zacks Rank & Key Picks

Chevron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Matador Resources Company (MTDR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Denbury Inc. (DEN - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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