ChevronTexaco to pull out of Papua New Guinea JVs
11 Apr 2003
ChevronTexaco today announced plans to sell its interests and resign operatorship of its Papua New Guinea (PNG) joint ventures as part of the company's drive to focus on assets more aligned with strategic growth objectives.
ChevronTexaco said the offer for sale will include all its oil and gas production interests in Kutubu, Moran, Gobe Main and South East Gobe oil fields in PNG's Southern Highlands Province.
The joint venture currently produces around 53,000 barrels of oil per day. ChevronTexaco, through its subsidiary Chevron Niugini (CNGL) holds equity interests in the Kutubu, Moran, Gobe Main and South East Gobe fields, an exploration license and two petroleum retention licenses.
Commenting on the announcement, Peter Robertson, vice chairman of ChevronTexaco said, 'The decision to conclude our business in PNG was a very difficult one given the outstanding relationship the company has been privileged to enjoy over two decades with the people and government of Papua New Guinea. During this time, CNGL and its Joint Venture Participants have invested more than $2.9 billion in PNG exploration, development and production.'
Robertson added, 'Our decision was a result of the company's ongoing review of its global portfolio following the merger of Chevron and Texaco in October 2001. We believe the associated gas reserves from the operating oil fields make this sale particularly attractive to companies interested in future gas projects in PNG, in addition to the production of oil.
ChevronTexaco first discovered oil in commercial quantities in the Kutubu region in 1985, with production beginning in 1992. Since then, more than 300 million barrels of oil have been produced.
