Mining and trading giant Glencore has put its oilfields in Chad up for sale, three sources familiar with the matter said, in a retreat from its foray into oil production following asset writedowns over the past decade.
Like its oil trading peers, Glencore expanded in the upstream sector around a decade ago in order to secure oil flows, but the value of the assets tumbled with the oil price slump in late 2014.
News of the Chad oilfields sale coincides with the retirement of Glencore’s head of oil Alex Beard at the end of this month and the separation of its upstream oil interests from marketing. The main producing fields are Mangara and Badila.
Glencore’s net oil production from the West African country accounted for more than half its net production at 7700 barrels per day (bpd) out of a total net 12700 bpd.
By comparison, oil majors BP produces close to 4million barrels of oil equivalent per day. The sources said that Glencore put the assets up for sale less than a month ago.