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Image courtesy of Chevron.

Chevron confirmed on Friday that it will divest its geothermal assets in Southeast Asia.

The company’s wholly owned subsidiaries have entered into a sales and purchase agreement with Star Energy Consortium to sell Chevron’s Indonesian and Philippines geothermal assets.

In Indonesia, Chevron subsidiaries operate the Darajat and Salak geothermal fields in West Java.

In the Philippines, company subsidiaries have a 40 percent equity interest in the Philippine Geothermal Production Company.

Philippine Geothermal operates the Tiwi and Mak-Ban geothermal power plants in Southern Luzon.

According to Chevron, the Tiwi and Mak-Ban plants have a combined generating capacity of 692 megawatts.

The value of the deal was not disclosed.

“These assets deliver reliable energy to support the needs of Asia-Pacific’s growing economies.This sale is aligned with our strategy to maximize the value of our global upstream businesses through effective portfolio management,” Chevron upstream executive vice president Jay Johnson said.

Earlier this month, Chevron set its 2017 capital and exploratory investment program at $19.8 billion, including $4.7 billion of planned affiliate expenditures.

Chevron’s upstream business will be allotted $8.5 billion of planned capital spending related to base-producing assets.

The company’s 2017 budget marks the fourth consecutive year of spending reductions.
Chevron vice president and CFO Pat Yarrington said during the company’s third quarter earnings call that Chevron earned $800 million in proceeds from assets sales during the third quarter.
Those sales included the sale of selected Gulf of Mexico assets and had a “minimal impact on earnings in the quarter,” Yarrington said.
As of the end of the third quarter, Chevron had earned $2.2 billion in year-to-date asset sale proceeds.