Oil giant Chevron Corporation CVX plans to sell its San Francisco Bay Area campus and move its global headquarters to a newly leased space in California, reports indicate, citing a company spokesperson.
The shifting of the headquarters is planned for the third quarter of 2023.
“The current real estate market provides the opportunity to right-size our office space to meet the requirements of our headquarters-based employee population,” the spokesperson reportedly said in an email.
Chevron plans to cover the cost incurred by employees who opt to shift to its Texas campus, the Wall Street Journal, which first broke the news, reported. The company’s upstream operation, which includes oil exploration, drilling and excavation, are based out of Houston, Texas.
Several big corporations, including Tesla, Inc. TSLA, Caterpillar, Inc. CAT and Oracle Corporation ORCL have recently moved a majority of their workforce to Texas.
Real estate prices in California have reached stratospheric levels amid the tech boom, Bloomberg said. Houston might be providing a cheaper option on that front, and additionally, Texas has no state individual income taxes.
Chevron’s peer Exxon Mobil Corporation XOM in January announced it is moving its corporate headquarters from suburban Dallas to Houston.
Chevron closed Friday’s session 1.64% higher at $144.77, according to Benzinga Pro.