MasterPlan Capital's  Instablog

With recent key acquisitions the Turkish Black Sea, offshore Liberia and offshore China Chevron Corp. (NYSE: CVX) is continuing to extend its international deepwater reach.

 

 

The company, via its Turkish subsidiary, reached an agreement with Turkey’s state controlled oil company for a stake in a comprehensive exploration license in the Black Sea. Chevron is acquiring a 50% interest in a western portion of License 3921 which covers 8700 square miles 220 miles Northwest of Ankara, Turkey’s capital. The other half of the license will be controlled by Tukiye Petrolleri Anonim Ortakl g (TPAO). TPAO will operate the first exploratory well and if it proves successful will drill another in 2012. Chevron will be operator of any future development beyond these exploratory drillings.

 

Chevron called the agreement “a significant exploration entry into a highly prospective new basin”.

 

 

The government of Liberia has approved a request by Chevron to acquire a 70% interest in three deepwater hydrocarbon concessions in waters off Liberia. In addition to the equity interest, the company was also granted operatorship of the projects.

 

The blocks are known as LB-11, LB-12 and LB-14. All blocks are south of the capital city of Monrovia with the furthest being 110 miles away. They cover a total of about 3700 square miles of ocean.

 

The agreement calls for Chevron’s Liberian subsidiary to explore the offshore blocks for a minimum of 3 years beginning late this year. Several offshore basins in the West African have become significant producers of late and this acquisition demonstrates the firm’s commitment to the region.

 

 

After a grueling and time consuming approval process China has granted Chevron’s Chinese subsidiary the right to buy operating interests in three promising exploration blocks in the Pearl River Mouth Basin of the South China Sea. Devon Energy China Ltd. is selling Chevron 100% of block 53-30, 100% of block 64-18 and 59% of block 42-05. Incidentally, BP (NYQ: BP) will be purchasing the remaining 41% of block 42-05.

 

The acreage involved totals over 8000 square miles and Chevron will be the chief operator during the duration of the exploratory phase.

 

Chevron, it would seem, is serious about growing its international offshore exploration portfolio.