The US oil major – Chevron says it will sell its 50 per cent stake in the Kitimat LNG Project in British Columbia.
This according to Canadian Press is part of the company’s move to cut spending on some investments and take a charge of at least US$10 billion because lower long-term prices for oil and natural gas will reduce the value of its assets.
It reported Chevron as saying that the decision was part of its global portfolio optimization effort focused on improving returns and driving value.
“Although Kitimat LNG is a globally competitive LNG project, the strength of Chevron Corp.’s global portfolio of investment opportunities is such that the Kitimat LNG Project will not be funded by Chevron and may be of higher value to another company,” the company was quoted as saying in a statement.
“Chevron intends to commence soliciting expressions of interest for its interests in the Kitimat LNG Project. No timeline has been set to conclude this process.”
It also reported the company as saying that it would continue to work with its joint venture partner Woodside, government and First Nations partners during the process.
This decision according to the report only impacts Chevron’s stake in the Kitimat LNG Project. The company’s other assets in Canada are not included in the decision.
The Kitimat LNG Project which includes upstream resources assets in the Liard and Horn River Basins northeast B.C the report said is a 50-50 joint venture between Chevron Canada Ltd. and Woodside Energy International (Canada) Ltd. It lies 471-kilometre Pacific Trail Pipeline and a natural gas liquefaction facility at Bish Cove near Kitimat.