Corporate News

Chevron mulls sale of Asian geothermal assets

Posted on March 02, 2016

CHEVRON CORP. is considering a sale of its geothermal assets in Asia as it seeks to counter a slump in energy markets, according to people familiar with the matter.

The operations could fetch as much as $3 billion, said one of the people, who asked not to be named because the deliberations are private. Chevron, the largest US oil producer after Exxon Mobil Corp., is working with financial advisers on the sale, though no formal process has started, and Chevron may decide to keep the assets, the people said.

A spokesman for Chevron said the company doesnít comment on mergers, acquisitions or divestitures.

Chevron has slashed head count and canceled drilling projects to slow the exodus of cash as prices in the world energy markets spiral downward. It is also seeking buyers for its stake in an Indonesian oil and natural gas field that may fetch about $1 billion, people with knowledge of the matter said in October.

Chevronís main Asian geothermal holdings, which generate energy from the earthís heat, are based in Indonesia and the Philippines. In Indonesia, the explorer owns the Salak fields, one of the largest geothermal operations in the world, with a total operating capacity of 377 megawatts, according to information on its Web site. The company also has a 40% interest in Philippine Geothermal Production Co. -- Bloomberg