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SAN RAMON, Calif. -- ChevronTexaco Corp.'s North America Exploration and Production Co. has sold 13 producing fields in western Canada to Acclaim Energy Trust and Enerplus Resources Fund for approximately $800 million. The company expects to record a significant gain to income upon close of the sale, which is anticipated to occur at the end of the second quarter or during the third quarter of this year.
The transaction includes the sale of oil- and gas-producing properties in the Northwest Territories, British Columbia, Alberta and Manitoba.
"We're rationalizing our upstream portfolio to strengthen our competitive position by selling non-strategic assets and retaining those fields that represent long-term value for ChevronTexaco," said vice chairman Peter Robertson. "Our strategy in North America is to streamline the portfolio to include approximately 400 core fields that account for the vast majority of current production and cash flows."
ChevronTexaco announced last year that it was evaluating opportunities to divest certain Canadian producing properties to improve performance of its North America exploration and production portfolio. The company recently announced the sale of its EnerPro Midstream Co. assets in Alberta.
"These assets have played a significant role in our history in Canada for the past 65 years," said Alex Archila, president of Chevron Canada Resources. "While they have been a profitable part of our portfolio for many years, the combination of current market conditions and the size of the assets relative to our portfolio makes this an ideal time for a divestiture. This sale will allow the organization to focus its efforts on our new growth areas in Canada."
The company's portfolio-optimization program does not affect strategically significant Canadian assets, which include the Athabasca Oil Sands Project; Mackenzie Delta gas; Canadian east coast exploration, development and production activities; or the company's refining and marketing operations.