EU and US could reach trade deal this weekend - Reuters
Investing.com-- Chevron Corp (NYSE:CVX) said on Monday that it had closed a deal to sell a 70% stake in its East Texas gas assets to a unit of Tokyo Gas Co., Ltd. (TYO:9531) for a deal value of $525 million.
Chevron said in a press release that $75 million of the deal will be paid in cash and $450 million will be a capital carry to fund development in its Haynesville project.
Chevron will retain a 30% non-operated working interest in a joint venture with Tokyo Gas and an overriding royalty interest in the gas assets.
Chevron said the transaction is expected to generate over $1.2 billion in value to the oil and gas giant.
Chevron was reported to have been considering the Texas sale in late-2022, as part of its plans to divest up to $15 billion of assets by 2028 to diversify its energy portfolio.
Monday’s deal boosts Tokyo Gas’ presence in the U.S. shale patch, the world’s biggest source of gas. The deal comes as the Japanese utility seeks to secure more supplies for Japan, which is heavily reliant on fossil fuel imports to meet energy requirements.
Tokyo Gas already has a major presence in the Haynesville basin, having purchased Rockcliff Energy for $2.7 billion in 2023.