The sale is part of plans announced in 2003 to improve the competitive performance of the company's upstream portfolio through the divestment of nonstrategic assets and the realignment of strategic business units. To date, the company has reached agreement to sell approximately two-thirds of production targeted for sale in ChevronTexaco's ongoing U.S. divestment program.
ChevronTexaco Vice Chairman Peter Robertson said: "This sale is significant. It is a key step in our drive to streamline our portfolio of assets to approximately 400 core fields that represent the vast majority of our long-term value in the United States and Canada. Furthermore, the transaction allows us to focus on maximizing and growing the value of our base business."
Ray Wilcox, vice president of ChevronTexaco and president of ChevronTexaco Exploration and Production Co., added that ChevronTexaco will continue to strengthen its North America portfolio, which is built on strong positions in strategic oil and gas regions. "We're the No. 1 producer in California and the Gulf of Mexico Shelf, the No. 2 producer in the Permian Basin, and the No. 3 natural gas producer in the United States. The sale allows us to focus our resources on core properties and future opportunities that can add the most value to ChevronTexaco stockholders."
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