Chevron Considers Sale of Haynesville Assets
11.15.2023 By Tank Terminals - NEWS

November 15, 2023 [Oil Price]- Chevron is considering offloading its assets in the eastern Texas portion of the Haynesville shale play after the massive acquisition of Hess Corp.

 

The supermajor is considering other options for the assets as well, Reuters reported, citing unnamed sources. The sources noted that Chevron’s output from part of these assets is around 40 million cubic feet of gas daily.

Chevron has plans to divest from $15 billion worth of assets over the next five years, after a string of acquisitions boosted its shale acreage by as much as 700,000 acres, and production by half a million barrels of oil daily.

“Chevron is evaluating opportunities for our East Texas assets and is committed to safely delivering high returns and lower carbon,” a spokesperson for the company told Reuters.

The Haynesville shale formation is one of the biggest reservoirs of natural gas in the U.S., with an estimated 304 trillion cu ft of technically recoverable gas.

It is also in close proximity to the Gulf Coast and LNG terminals there. As such, it could be an attractive opportunity for prospective buyers amid robust demand expectations for LNG demand. These expectations have spurred a capacity-building rush in the U.S., which is seen pushing North America’s total to a twofold increase by 2027, to 24.3 billion cu ft daily.

Chevron, meanwhile, is growing in international oil. The acquisition of Hess Corp. for $53 billion gave the supermajor access to the oil wealth of Guyana, where Hess was the partner of Exxon in the prolific Stabroek Block that has already yielded a dozen major discoveries.

By buying Hess, Chevron will get 30% ownership in more than 11 billion barrels of oil equivalent discovered recoverable resource with high cash margins per barrel, strong production growth outlook, and potential exploration upside, Chevron said when it announced the acquisition.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Oman Signs 10-Year LNG Supply Deal with Shell
04.17.2024 - NEWS
April 17, 2024 [Microsoft Start]- Oman LNG has signed a 10-year liquefied natural gas supply agre... Read More
Neuman & Esser to Build Green Hydrogen Plant in Chile
04.17.2024 - NEWS
April 17, 2024 [Gas Compression Magazine]- Neuman & Esser was awarded a contract from Empresa... Read More
Engie Buys Two Dutch Biogas Sites, Hunts for More
04.17.2024 - NEWS
April 17, 2024 [Reuters]- French energy company Engie (ENGIE.PA), opens new tab has acquired tw... Read More
Shell Named NanoVapor as Best Technology to Make a Tank Safe
04.17.2024 - NEWS
April 17, 2024 [Storage Terminals Magazine]- Shell Retail Engineering Network has recently implem... Read More