ChevronTexaco plans to sell more North America assets, layoff 200

The Associated Press

ChevronTexaco Corp. plans to sell more of its North America oil fields and shed up to 200 more U.S. jobs as part of a purge designed boost the oil giant’s profits.

The moves, announced Dec. 8, continue a 4-month-old overhaul undertaken to improve the returns from a $39 billion merger that formed the company in October 2001.

ChevronTexaco’s stock is worth roughly 10 percent less than when the deal was completed. On Dec. 9, shares gained 61 cents to $79.22 on the New York Stock Exchange.

The latest divestitures will include about 60 percent of ChevronTexaco’s U.S. oil fields in 15 states. The San Ramon-based company said the fields haven’t been that important, accounting for just 5 percent of ChevronTexaco’s U.S. production.

The asset sales, coupled with a decision to combine some operations in Texas and Louisiana, will eliminate between 150 and 200 jobs, the company said.

ChevronTexaco also plans to sell several older oil fields and other assets in western Canada that produce 35,000 barrels of oil per day. The company said it’s too early to tell how many jobs will be lost in the Canadian reshuffling.

The company will absorb fourth-quarter charges to account for the latest restructuring. The charges aren’t expected to have a significant impact on ChevronTexaco’s fourth-quarter earnings, but the company said some of the asset sales might produce windfall profits next year.

ChevronTexaco hopes to raise its pretax profits $500 million by selling about $6 billion in assets during the next few years. The company’s assets totaled $81 billion as of Sept. 30.