15 Apr Chevron considers $2.5 billion sale of Canadian oil sands
Chevron (NYSE:CVX) is exploring the possibility of offloading its 20% stake in Canada’s Athabasca Oil Sands project, a sale which could generate a figure around the US$2.5 billion mark.
It is understood that the US oil giant has spoken with investment banks regarding the prospect of selling the stake in the oil sands project, located in Western Canada.
If a sale were to be completed, it would represent the latest instalment in an ongoing exodus from the Canadian oil sands industry, after ConocoPhillips (NYSE:COP) and Royal Dutch Shell (LSE:RDSA) both agreed multi-billion dollar sales of Canadian oil sands assets in the last month.
Sustained volatility in global oil prices has put a strain on industry leaders in recent years, which has led to multinational oil firms following a policy of streamlining with regards to company assets.
Consequently, Chevron has questioned the appeal of its oil sands business in the current environment, and is close to making a decision on the matter.
However, the second largest US-based oil producer will take into account various factors including price, before arriving at a verdict on the potential sale.