• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 10 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 5 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 1 day Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 3 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.

Chevron Ponders Sale Of $2.5 Billion Stake In Athabasca Oil Sands Project

Chevron is pondering the sale of its 20 percent stake in the Athabasca Oil Sands venture in Canada for $2.5 billion, according to anonymous sources cited by Reuters in a recent report.

The company, which is the United States’ second-largest oil producer, has already spoken to investment banks regarding the logistics of a potential deal, one of the sources said.

Royal Dutch Shell agreed to sell a majority of its assets in Canadian oil sands projects to Canadian Natural Resources last month for a total of $8.5 billion.

Low-but-recovering oil barrel prices make it difficult for oil companies to turn a profit from extraction projects in the current business environment. The people who spoke to Reuters said that Chevron was close to coming to a decision regarding the Athabasca sale.

To conserve funds and ensure continuing profitability, the major companies are cancelling or postponing investments in new production ventures, especially complex, costly projects like the exploitation of Canadian tar sands and deep-offshore fields that only turn a profit when oil is selling at $80 to $100 or more per barrel. At the time of this article’s writing, Brent barrels traded at $55.71.

Chevron declined to comment on the matter.

In December, Statoil announced its decision to sell off its oil sands assets to Athabasca Oil Corp. in a deal worth $832 million. The Norwegian firm spent nearly a decade in Alberta’s oil sands, and will exit the play with a loss of at least $500 million.

Related: Myanmar Oil Pipeline Could Bring Cheaper Crude To China

“This transaction corresponds with Statoil’s strategy of portfolio optimization to enhance financial flexibility and focus capital on core activities globally,” Lars Christian Bacher, the company’s executive vice president for international development and production, said in a statement. Translation: Canada’s oil sands are too expensive.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News