Chevron and Shell have signed a nonbinding agreement covering potential production rights in Ghana's South Deepwater Tano Cape Three Points block, Reuters reported Thursday. The deal gives Chevron an option, not a producing asset, with work program, ownership split, and investment terms still to be negotiated. Chevron generated $15.4 billion in adjusted free cash flow last quarter, providing ample funding for exploration. At $212.70, the stock trades 32.21% above its GF Value estimate of $160.88, leaving little room for missteps.
Chevron CorpNonbinding option for Ghana block; terms and ownership undetermined, no immediate impact.
Shell plcNonbinding agreement with Chevron for Ghana block; no definitive terms or production impact.
