Chevron Corporation (NYSE: CVX, ETR: CHV), a leading oil company, announced its plans to divest its remaining assets in the North Sea, marking its departure from the region after 55 years.
The sale will include Chevron’s 19.4% interest in the Cair oilfield, which is managed by BP and located west of the Shetland area. This field is the largest in the North Sea, with a daily production of around 120,000 barrels.
This move comes as Chevron prepares for its US$53 billion acquisition of its competitor Hess. The company has outlined plans to sell off US$20 billion in assets to facilitate this significant transaction.
Earlier in the week, Senator Chuck Schumer expressed concerns that this deal should be blocked to prevent potential increases in gas prices.
Oil prices have dipped due to increasing global stockpiles.
Brent crude, the international standard, has dropped by 0.4% to around $82 a barrel after a 0.5% rise on Wednesday.
The U.S. benchmark, West Texas Intermediate, has also decreased, nearing $78.
The International Energy Agency reported on Wednesday that global oil reserves surged by 34.6 million barrels in March.
Additionally, data released by the OPEC cartel on Tuesday indicated that several member countries, despite commitments to reduce production, are exceeding their assigned quotas.
The threat to supply chains from ongoing conflicts in the Middle East is also believed to be diminishing.
