Oil major, Chevron Corporation, has declared plans to sell more assets, including oil blocks, in Nigeria as it declared $36 billion earnings from sales and operating revenues in the first quarter of 2018.
The third biggest international oil company (IOC) in Nigeria in terms of assets and oil production, reported earnings of $3.6 billion ($1.90 per share – diluted) for first quarter 2018, compared with $2.7 billion ($1.41 per share – diluted) in the first quarter of 2017.
Chairman and CEO of the company, who announced this last weekend, maintained in a document sighted by New Telegraph that the company would continue its asset sale spree, adding that it raked in $36 billion in first quarter of 2018 from sales and other operating revenue, compared to $32 billion in the yearago period.
Chevron had earlier announced that it would sell its 40 per cent stake in two shallow water oil blocks, OML 83 and OML 85, in the country. In 2015, the oil firm divested 40 per cent from Oil Mining Leases (OMLs) 86 and 88, both located in shallow waters off Bayelsa State, bringing to seven the number of oil blocks sold since 2013.
Chevron had sold its stakes in OMLs 52, 53, 55, 83 and 85 in a string of divestments carried out by the IOCs within the two-year period. Stating that foreign currency effects increased earnings in the 2018 first quarter by $129 million, compared with a decrease of $241 million a year earlier, Michael Wirth said: “In addition, we continue our asset sale programme. “Sales and other operating revenues in first quarter 2018 were $36 billion, compared to $32 billion in the year-ago period.
Upstream volumes are expected to continue to increase in future quarters. In the downstream, we reached a significant milestone.” Chevron Phillips Chemical Company LLC, the company’s 50 per centowned affiliate, commenced operations of a new ethane cracker at its Cedar Bayou facility.
At peak production, the unit is expected to produce 1.5 million metric tons per year and to be one of the largest and most energy-efficient ethane crackers in the world. “In addition, we continue our asset sale programme,” Wirth continued.