NEW YORK –Chevron (IW 500/2) Tuesday said it plans $15 billion in asset sales through 2017 as it seeks to maintain a strong dividend for shareholders amid lower oil prices.
The divestment program expands by 50% a previous target to sell $10 billion in assets through 2016, according to a presentation by Chevron chief executive John Watson.
In 2014, Chevron divested $6 billion in assets, including the $1.3 billion sale of a stake in a Chad oil project to the Republic of Chad. The deal also comprised Chevron's interest in a pipeline system that transports oil from Chad to Cameroon.
The move follows Chevron's January announcement of a 2015 capital budget of $35 billion, down 13% from last year. The company also halted its share buyback program, citing the big drop in oil prices.
In recent months, Chevron has also withdrawn from exploration ventures in Poland, Romania, Lithuania and Ukraine.
Other large oil companies, including ExxonMobil (IW 500/1) and Royal Dutch Shell (IW 1000/2), have also trimmed spending in response to about a 50% drop in oil prices since June. Leading oil services companies, including Halliburton and Schlumberger, have announced deep job cuts.
Copyright Agence France-Presse, 2015
