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. Last Updated: 07/27/2016

Chevron May Sell Unocal Units

SINGAPORE -- ChevronTexaco may sell takeover target Unocal's North American onshore fields and Asian power assets to raise $2 billion, a person close to the plan said Tuesday.

ChevronTexaco, the world's fifth-largest oil company, is buying smaller California rival Unocal for its oil and gas producing assets in the Gulf of Mexico and its offshore portfolios in Indonesia and Thailand, said the person, who spoke on condition of anonymity.

"They will be its core assets. Everything else they would consider to sell," the source said.

ChevronTexaco -- hoping to further elevate its already surging profits by boosting its oil and natural gas supplies in Asia -- clinched a deal to scoop up Unocal for about $16.4 billion on Monday.

It had said it expected to raise $2 billion from asset sales after the deal closes but declined to specify what would be shed.

The onshore assets in the United States and Canada are considered mature and costly to maintain, the source said. ChevronTexaco is also likely to shed Unocal's politically risky assets in Myanmar, the source added.

"Because of the political sensitivity, there is a possibility they would look to sell that," the source said.

Unocal has stakes in three major geothermal electricity projects with a combined installed capacity of 1,100 megawatts, enough to power 1 million modern homes.

They are the Tiwi and Mak-Ban plants on the main Philippine island of Luzon and the Gunung Salak power station 100 kilometers south of Jakarta, Indonesia.

The plants are valued at more than $600 million, he said. Asia power plants typically have sold at $500,000 per megawatt.

In the United States, Unocal's onshore oil and gas exploration and production assets are in the Permian and San Juan basins in Texas and New Mexico, according to Unocal's web site.

Unocal also owns oil and gas operations in Alaska, where it operates 10 platforms in the Cook Inlet off the southern Alaska coast and six of 14 producing gas fields, the web site says.

Its Alaskan assets also include its minority stakes in two other fields producing 20,000 barrels per day of equity oil to Unocal.

In Canada, Unocal wholly owns the Calgary-based oil and gas exploration and production company Northrock Resources.

Unocal, the United States' No. 9 oil and gas producer, produces oil and gas in seven countries outside of North America.

Other production states include Bangladesh, the Netherlands, Azerbaijan, the Democratic Republic of Congo and Brazil.