- U.S. oil company also selling assets in Indonesia, Philippines
- Low energy prices have led to cutting jobs, canceling projects
Chevron Corp. is weighing a sale of a roughly $500 million stake in a gas field in Thailand as it seeks to divest some Asian assets in an effort to weather a global slump in energy prices, according to people familiar with the matter.
Chevron is considering options for its 16 percent holding in the Arthit field in the Malay Basin, the people said, asking not to be identified as the details are private. The U.S. oil company has held preliminary talks about selling the stake to Thailand’s PTT Exploration & Production Pcl, which owns 80 percent of the field and is the operator, the people said.
Chevron, the largest U.S. oil producer after Exxon Mobil Corp., is selling assets, cutting headcount and canceling drilling projects to conserve cash after oil prices last year fell to the lowest level in more than a decade. The San Ramon, California-based company is also seeking buyers for its stake in an Indonesian oil and natural gas field, while a planned sale of its Asian geothermal assets could fetch as much as $3 billion, people familiar with the matter said last month.
A Chevron spokesman said the company doesn’t comment on market rumor or speculation.
A spokeswoman for PTTEP said the company is considering opportunities amid the rout in global oil prices. The firm is interested in assets that are producing or about to start production in Thailand and other Southeast Asian countries, “in line with our strategic investments,”she said in an e-mailed response to Bloomberg queries. “However, PTTEP should not comment on Chevron’s business.”
Thailand’s largest publicly listed oil and gas explorer is interested in buying a stake in Myanmar’s Yadana gas field from Chevron, Reuters reported Tuesday, citing Pannalin Mahawongtikul, executive vice president for finance and accounting at PTTEP.
Chevron produced 1 billion cubic feet of gas from all its fields last year in Thailand, the country with its biggest production volume after the U.S., according to its 2015 annual report. It also owns and operates fields in the Pattani Basin in the Gulf of Thailand, the report shows.