Chevron seeks for Canadian oil project up to $1.5 billion
Chevron Corp (CVX.N) has been searching for up to $1.5 billion of equity investment to help develop its Duvernay shale formation assets in Canada and contacted potential investors including private equity firms, according to people familiar with the matter.
The San Ramon, California-based oil and gas company has sent an offering memorandum to potential investors over the summer, said the people, who asked not to be named because the discussions were private.
Yet, because oil and gas developments take many years to generate a return for their investors, Chevron was looking for an equity investor with a long-term investment horizon, the people said.
Some private equity firms had looked at the opportunity to provide an equity investment into the Duvernay project, but may not ultimately partner with Chevron because of the long investment horizon, according to the people familiar with the matter.
Chevron has recently bulked up its acreage in the Duvernay by 20 percent.
Other lease owners in the Duvernay shale formation include Penn West Petroleum Ltd (PWT.TO), Royal Dutch Shell Plc (RDSa.L) and Athabasca Oil Corp (ATH.TO).
Source: Reuters
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