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Image courtesy of Chevron.

Chevron confirmed last week that it will accelerate its sale of shallow water assets in the U.S. Gulf of Mexico.

The company told Rigzone that it will speed up divestitures from its mature shallow water assets in the Gulf of Mexico as it looks to trim expenses and focus on deepwater assets.

According to the Times-Picayune, Chevron plans to lay off 350 workers this year in Louisiana, mostly at its Covington headquarters, as part of the divestiture plan.

Chevron expects to start selling the shallow water assets this year and finish the sales process by the end of 2017.

“Over 2016 and 2017, we’re targeting another $5 billion to $10 billion in divestments. In all cases, we will only sell assets where we can realize fair value,” a Chevron spokesperson told Rigzone.

According to a Tudor, Pickering and Holt analyst note seen by Rigzone, Chevron may be marketing as many as 27 fields that produced a total of 46,000 barrels per day in 2010, with nearly three-quarters of that production being liquids.

The assets sales could earn the company up to $1 billion.

Chevron has not disclosed a list of the shallow water assets it plans to market.

Chevron reported a $588 million fourth quarter loss earlier this month as its upstream segment slid to a $1.36 billion fourth quarter loss, down from earnings of $2.67 billion in the prior year quarter.

Full year 2015 earnings fell to $4.6 billion, or $2.45 per diluted share, down from $19.2 billion, or $10.14 per diluted share, in 2014.

Chairman and CEO John Watson said he expects cuts to operating expenses and capital spending this year to be on par with the $9 billion Chevron slashed from its 2015 spend compared to the previous year.