May 1, 2005

ChevronTexaco deals for rival Unocal

After the dust settles on ChevronTexaco Corp.'s $16.4 billion deal for Unocal Corp., the California oil giant will look to sell off some of its newly acquired assets like the North American onshore fields and Asian power plants, officials said. ChevronTexaco said it could garner up to $2 billion for those properties.

San Ramon, Calif.-based ChevronTexaco's main interest is in Unocal's offshore fields in the Gulf of Mexico, Indonesia and Thailand, officials said.

ChevronTexaco, the second largest oil company in the United States, had said it expected to raise $2 billion from asset sales after the deal closes.

Unocal, the ninth largest oil and gas producer in the U.S., has stakes in three major geothermal electricity projects with a combined installed capacity of 1,100 megawatts, enough to power a million modern homes. They are the Tiwi and Mak-Ban plants on the main Philippine island of Luzon and the Gunung Salak power station 60 miles south of Jakarta, Indonesia.

In the U.S., El Segundo, Calif.-based Unocal's onshore oil and gas exploration and production assets are in the Permian and San Juan basins in Texas and New Mexico.