What's going on in SJVBU? I hear there will only be 1 drilling rig operating soon?!
10 replies (most recent on top)
Chevron wants outta California !!!!
SJV is toast. Will be closed down and sold off. All good things come to an end someday.
Anyone laid off or being laid off by Chevron in Bakersfield with extensive gas pipeline operating and functional use knowledge (specifically the cross valley line or San Joaquin Valley fuel system) that is looking for lucrative consulting work should put their resume on Monster.com ASAP
I don't disagree CVX wants to unload SJV. There are a lot of old stuff with fields approaching 80% recovery. However, CVX likes to showcase SJV as their "expertise" in heavy oil so they can do more work in PZ and Indonesia. However, CVX is not doing so hot in either place lately.
If oil is depressed through early 2017 dividend will be cut. Has to as free cash flow is close to a billion negative. The dividend costs 8.5 billion. They can't borrow their way out of this. SJVBU is an asset Chevron wants to sale. It has been said on here before and they are right. Chevrons core is Unconventionals and deep water....watch these short videos on Wall streets take on Chevrons dividend. http://www.cnbc.com/2016/01/29/expect-dividend-cuts-in-the-energy-sector-analyst.html
The company has been seeking to sell assets in the SJVBU with less than desired interest. It's only a matter of time before Chevron has to put on a fire sale to raise cash to pay that damn dividend albatross. We are investing precious little cash in drilling 1 well and stimulating others with the hopes of making the field a bit more lucrative to prospective buyers.
3 work over and 1 drilling is correct. As far as getting hit hard, no one really knows until ESP takes place. We've seen some positions eliminated and reorganizations lately, basically people moving around.
They will go down to one drilling rug and three workovers.
SJVBU has always been one of the stronger BUs. Are they getting hit with the ROM as harshly as the others?
I heard no drilling rigs and 1 work over rig.