Chevron said on Tuesday it would record an impairment to a portion of its U.S. upstream assets, primarily in California, and take losses related to oil and gas production assets sold in the U.S. Gulf of Mexico.
The oil major, in a filing, said it expects to take non-cash, after-tax charges of $3.5 billion-$4 billion in the results of fourth quarter of 2023.
Chevron said the impairment of California assets was due to continuing regulatory challenges in the state, which has resulted in lower anticipated future investment levels in its business plans.
The company, however, expects to continue operating the impacted assets for many years to come.
(Reporting by Arunima Kumar in Bengaluru; Editing by Krishna Chandra Eluri)