Chevron May Divest Some Mature Gulf of Mexico Assets

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

Industrial Info Resources is tracking 13 Gulf platforms in which Chevron has some level of investment.

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Breaking Up Is Hard to Do

Chevron Corporation has announced plans to market some of its mature Gulf of Mexico assets in order to streamline its portfolio and zero in on higher-value properties. While the company listed some, including Tubular Bells, which it owns 100%, and Petronius, which it operates with Talos Energy, it will also try to market "working interest in several other operated and non-operated fields," a company spokesperson told Industrial Info Resources.

In July of 2025 Chevron finalized its purchase of Hess Corporation and its assets in an all-stock transaction valued at $53 billion ($60 billion including debt). Since then, as with most large acquisitions, the buyer (Chevron in this case) looks to maximize its purchase by spinning off less-valuable properties, both of its own and from its new purchase. In some cases, this can also help reduce debt incurred in the transaction.

Industrial Info Resources is tracking 113 Gulf of Mexico platforms in which Chevron is either 100% owner or owns some interest. According to that IIR data, Chevron's net share of oil production in those assets is 291,991.67 barrels per day (bpd), and its share of natural gas production 225.15 million standard cubic feet per day (MMSCFD).

The company stresses that it is not in a hurry to sell, nor is it even committed to selling at all. Said the statement, "We are in the early stages and no decision or agreement has been reached. The process is expected to take multiple months and may or may not result in a sale."

And A Deal with TotalEnergies

Just days after this announcement, TotalEnergies announced that it had acquired 25% working interest in 26 of Chevron's operated exploration leases in the Gulf. In a sort of trade, Chevron then acquired from TotalEnergies a "75% operated interest in two exploration leases adjacent to existing jointly held exploration leases," said the TotalEnergies announcement.

The 26 leases, located 150 to 250 kilometers from shore, include 24 blocks located in the Green Canyon area and two blocks in the Walker Ridge area. Those are considered "well-proven plays."

Divesting Hess in Bakken and DJ Basin

This is not Chevron's first review of assets. In early October it announced plans to divest ownership interests in Hess Midstream and DJ Basin crude midstream assets. In return it would receive extended and improved Bakken midstream terms, which would reduce Chevron's Bakken unit midstream costs by approximately 50%, the company said.

As part of that plan, Chevron plans to fully deconsolidate Hess Midstream, including approximately $3.7 billion of Hess Midstream's debt.

Assuming regulatory and other approvals, the company expects those deals to be finalized by the end of 2026. At that time, "Chevron expects to recognize a one-time after-tax loss estimated at approximately $3 to $4 billion, given that the company is unable to recognize future Bakken midstream cost savings as an asset," said a company statement.

Not All Offshore Production Is Created Equal

Gulf of Mexico offshore assets may be expendable because the main reason for Chevron's Hess buyout was its stake in Guyana's Stabroek Block, which experts consider to be the most significant offshore discovery in decades. It is located approximately 120 miles off the Guyana coast, in the Guyana-Suriname Basin.

In that transaction, Chevron acquired Hess's 30% non-operated Stabroek stake, which is operated by ExxonMobil. There they can access more than 11 billion barrels of discovered-recoverable oil equivalent, reversing their previously declining domestic and international reserves. That could boost Chevron's overall output to 4 MMBpd by 2030.

Key Takeaways

• After a $53 billion buyout of Hess Corporation, Chevron is looking to spin off some less-productive Gulf of Mexico assets. Even so, it's not a fire sale, declaring that it's only exploring opportunities and, without a good offer, may not sell anything.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).