Chevron reports decline in oil, natural gas production

Chevron Corp. said Tuesday that first-quarter oil and natural gas production fell 1.2% after the Venezuelan government seized bigger stakes in two oil fields.

Chevron pumped the equivalent of 2.61 million barrels of oil a day in January and February, down from 2.64 million a day during the first quarter of 2006, the San Ramon, Calif.-based company said. Chevron’s share of production from two Venezuelan fields declined after the government of President Hugo Chavez converted operating contracts to joint ventures in October.

The amount of crude processed at the company’s U.S. refineries plunged 20% in the first two months of the year, Chevron said. A fire in a crude-oil processing unit at a Richmond, Calif., refinery in January reduced output of fuels. The unit restarted last month, Chevron previously said.

First-quarter results, to be released April 27, will include gains on asset sales of about $700 million, Chevron said. In March, the company completed the sale of its 31% stake in Europe’s second-largest refinery to BP.

Chevron’s interim quarterly report was released after the close of regular U.S. stock trading. Shares of Chevron rose $1.55 to a record $77.04 on Tuesday.