Chevron has sold a 70% stake in its East Texas gas assets to an affiliate of TG Natural Resources (TGNR), owned by Tokyo Gas and Castellon Commodities International for $525 million, with $75 million paid in cash and $450 million as capital carry to fund Chevron’s Haynesville development.
The transaction is anticipated to generate over $1.2 billion in value to Chevron at current Henry Hub prices, to US oil major said in a statement.
“This transaction supports Chevron’s previously announced plans to divest $10-15 billion of assets by 2028 in order to optimize its global energy portfolio,” the US oil major said in a statement.
Upon closure of the deal, Chevron will retain a 30% non-operated working interest in a joint venture with TGNR and an overriding royalty interest in the assets.
