(Bloomberg) – Chevron Corp. will book fourth-quarter charges of $3.5 billion to $4 billion, citing assets it sold in the Gulf of Mexico and policies in California prompting the company to slash investments in the state.
Chevron said Tuesday in a filing it will impair some of its U.S. oil and gas production assets, mostly in California, because of “continuing regulatory challenges” there. It comes after the company said in December it was cutting refinery investments in the state because of policies aimed at phasing out fossil fuels.
The San Ramon, California-based company said it plans to continue operating the upstream assets it is impairing for years to come.
The company said it’s taking charges for the Gulf of Mexico assets because the companies that agreed to buy them have since filed for Chapter 11 bankruptcy. Chevron expects it will now be responsible for the assets, which it plans to decommission over the next decade.
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