Chevron is reportedly mulling the sale of its geothermal assets in Asia.

A source familiar with the matter told Bloomberg that Chevron is considering the sale of geothermal assets that could be worth as much as $3 billion.

Sources told Bloomberg that the company is working with financial advisers but has not begun any formal sales process and may decide to hold onto the Asia assets.

Chevron told the news agency that it does not comment on divestitures, mergers or acquisitions.

Geothermal technology harnesses the thermal energy produced when groundwater deposits near dormant volcanoes are heated by molten rock, usually at depths of up to 9,800 feet, according to Chevron.

Using drills similar to those used to produce crude and natural gas, the heated water is captured, the steam and hot water are separated and the steam is cleaned and sent to a power plant.

The separated water is then returned to the reservoir, where it can then regenerate the steam source.

Chevron holds interests in geothermal projects in Indonesia and the Philippines.

In Indonesia, Chevron operates the Darajat and Salak fields, that have a combined operating capacity of 647 megawatts.

Chevron also has a 40 percent interest in the Philippine Geothermal Production Company, the operator of the Tiwi geothermal facility in Albay Province and the Mak-Ban geothermal facility in Laguna and Batangas provinces.

The Tiwi and Mak-Ban facilities provide steam to the third-party Tiwi and Mak-Ban geothermal power plants in southern Luzon that have a combined generating capacity of 692 megawatts.

Chevron reported a fourth quarter loss of $588 million, or $0.31 per diluted share, down significantly from earnings of $3.5 billion in the fourth quarter of 2014.

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.

The company’s upstream segment posted a loss of $1.96 billion for the full year, a significant drop from $16.89 billion in earnings reported in 2014.

Chevron’s downstream segment fared better with full year earnings of $7.6 billion, up from $4.33 billion in 2014, but fourth quarter earnings dropped to $1.01 billion from $1.51 billion in the fourth quarter of 2014.

Chairman and CEO John Watson said in February that he expects cuts to the company’s 2013 operating expenses and capital  to be on par with the $9 billion Chevron slashed from its 2015 spend compared to the previous year. 


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