Unocal to Sell Canadian Fields

Unocal Corp., which is being acquired by Chevron Corp., said Tuesday that it would seek bids for oil and natural gas properties in western Canada to take advantage of higher valuations.

The properties had first-quarter production equivalent to 36,900 barrels of oil a day, El Segundo-based Unocal said. The company hopes the sale will be completed by the end of the year, spokesman Barry Lane said.

Unocal had decided to sell the properties before Chevron offered to buy the company, Lane said. Plans for the acquisition were announced April 4.

The properties, located in British Columbia, Alberta and Saskatchewan, are mostly operated by Unocal’s Northrock Resources subsidiary.

Unocal joins rivals such as EnCana Corp. that are selling properties in Canada, where income trusts have been bidding up prices.

The properties have become more valuable with the rally in oil prices.

Oil futures in New York have risen 35% in the last year on concern that producers will have a hard time keeping up with growing fuel demand.

Unocal shares fell 55 cents to $55.90 on the New York Stock Exchange.