ChevronTexaco Sells Canadian Midstream Company

ChevronTexaco's subsidiary, Chevron Canada Resources, has reached an agreement to sell its EnerPro Midstream Co. to KeySpan Facilities Income Fund for approximately $190 million plus certain working capital adjustments. The company expects to record a gain to income upon close of the sale, which is anticipated to occur during the third quarter of this year.

EnerPro owns and operates natural gas and oil facilities located throughout Alberta, Canada, as well as natural gas liquids fractionation facilities located at Fort Saskatchewan, Alberta. The transaction is part of plans announced last December by ChevronTexaco to improve the competitive performance and operating efficiency of its North America exploration and production portfolio.

"Our ongoing portfolio rationalization effort will make us more efficient and improve our competitive position," said ChevronTexaco Vice Chairman Peter Robertson. "Our goal is to maximize the value of our base business," he added. "By divesting nonstrategic assets, we can apply a more intense focus on those parts of our portfolio that we believe will deliver the most value to our stockholders."

The 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.