Chevron, the second-largest U.S. oil company, is reportedly in talks with Indian energy producers regarding the sale of its downstream assets in Africa. Sources with knowledge of the situation say the talks are still in early stages. The sale is part of a plan announced by Chevron in March 2010 to sell some global assets.
Indian energy producers are vying for global energy assets with their Chinese counterparts as both countries look abroad for opportunities to bolster their energy reserve to meet soaring domestic demand. China and India are Asia's two fastest growing major economies, respectively.
In December, Chevron (CVX) sold some sub-Saharan Africa and Indian Ocean assets to South Africa's Engen. In 2009, the California-based offloaded some operations in Nigeria and Kenya.
Last year, Chevron announced it would cut its 2011 downstream spending by 15% to $2.9 billion to focus on more exploration and drilling projects geared at boosting oil output.