Chevron (CVX) Divests Argentine Assets To President Energy
Zacks Investment Research | Sep 24, 2017 10:05PM ET
Integrated energy company, Chevron Corporation (NYSE:CVX) recently divested its whole operating interest in oil producing assets at Puesto Flores and Estancia Vieja in the Neuquen Basin, Argentina to an upstream energy company, President Energy PLC.
Deal Details
Per the deal, Chevron received $400,000 from President Energy. The acquirer will pay $15 million and an additional $7 million by 2018 to the Rio Nego Province, where the basin is located. The deal will be closed by the end of September 2017. Till then, Chevron will manage the assets on behalf of President Energy.
The assets in Argentina have production capacity of more than 1,300 barrels of oil per day. The assets sold by Chevron have the capacity to generate positive cash flow of $1 million per month. Chevron has owned the assets for the last 15 years.
Other major players operating in the Neuquen Basin are Dutch integrated Royal Dutch Shell (LON:RDSa) plc Original post
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