OREANDA-NEWS. Chevron has sold its upstream and pipeline assets in Vietnam to the country's state-owned energy firm PetroVietnam for an undisclosed sum.

The sale covers Chevron's 42.4pc stakes in blocks B and 48/95 and its 43.4pc stake in block 52/97 offshore southwest Vietnam. Chevron operated the blocks, which were declared commercial in 2002 but have yet to start production. The deal takes PetroVietnam's share in the blocks to 65.9pc and 73.4pc respectively, with Japanese trading house Mitsui and Thailand's state-controlled oil firm PTT holding the remaining stakes.

PetroVietnam is also buying Chevron's 28.7pc stake in a gas pipeline project linking the blocks to power and fertilizer users. Gas from block B has long been earmarked to supply industrial users in south Vietnam, but disagreements over pricing have stalled development. Targeted output from the project is 640mn m?/d of gas and 21,000 b/d of liquids. The acquisition will help accelerate the field development, PetroVietnam said.

PetroVietnam produced 360,000 b/d of oil and 10.2bn m? of gas last year. Vietnam is looking to start importing LNG to help meet rising gas demand, with its first 1mn t/yr import terminal at Thi Vai due on line in 2017.

Chevron is targeting \$9bn of divestments in 2015-17, after completing almost \$6bn last year. It operates a lubricants business in Vietnam that is not included in the sale.