Chevron confirms start of process to explore sale of older Gulf assets

Supermajor Chevron (NYSE: CVX) confirmed to media this week that it was exploring a potential sale of some of its older assets in the US Gulf of Mexico. The company told both Reuters and Upstream that it was at the start of a multi-month process that could result in a number of assets being sold. These include Petronius, Tubular Bells and Llano, as well as working interests in various operated and non-operated fields.

Some of the assets involved were inherited when Chevron bought Hess in 2025. These include a 57% interest in Tubular Bells, which took Chevron’s ownership in the project to 100%, as well as a 50% interest in Llano. Chevron operates Petronius with a 50% interest, while Talos Energy (NYSE: TALO) owns the remaining 50% stake.

A Chevron spokesperson told Reuters that the move was part of the company’s attempt to ensure that its portfolio aligns with its priorities. However, there is no guarantee that a sale will take place, the spokesperson added.

Two sources familiar with the matter told Reuters that asset sales in the Gulf would likely raise around $1bn for Chevron. This comes against a backdrop of favourable market conditions. West Texas Intermediate (WTI) prices came down this week after hitting $110 per barrel but were still trading above $99 per barrel on October 22, with these price levels propping up asset valuations. Meanwhile, interest in buying US energy assets is high more broadly.

Reuters’ sources said Chevron’s assets were expected to attract interest from both international operators that specialise in offshore development and are seeking to grow their Gulf footprint, and from US companies focused on the region. Interest could also come from other supermajors, according to the sources.

Chevron is pursuing a target of raising its Gulf production to 300,000 barrels of oil equivalent per day (boepd). It has started up major new Gulf projects including Anchor and Ballymore over the past couple of years and is continuing to explore new prospects. Indeed, Reuters noted that the supermajor had been a top spender in recent federal sales of oil and gas drilling rights in the Gulf.

The confirmation that asset sales are being explored illustrates how the push to grow Gulf production will increasingly rely on new projects coming online while older, non-core projects look increasingly likely to be offloaded.