• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 16 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 26 mins Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 8 hours Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 2 hours Theresa May to Step Down
  • 55 mins IMO2020 To scrub or not to scrub
  • 3 hours Total nonsense in climate debate
  • 9 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 2 hours IMO 2020 could create fierce competition for scarce water resources
  • 22 hours Will Canada drop Liberals, vote in Conservatives?
  • 23 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 23 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 15 hours Australian Voters Reject 'Climate Change' Politicians
  • 6 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 19 hours Apple Boycott in China
The Trade War Is Transforming Oil Markets

The Trade War Is Transforming Oil Markets

China-US trade talks have exposed…

Sinopec Nearing Deal To Buy Chevron’s $1B South African Assets

Sinopec

China’s Sinopec is the last bidder left in the race to buy a majority interest in Chevron’s South African assets worth $1 billion, Reuters reported on Friday, citing two people familiar with the deal.

Sinopec is close to sealing an agreement with Chevron over the South African assets that the U.S. major first said would be put up for sale in January last year. Following an auction that had lasted more than a year, Sinopec is now the last bidder remaining, Reuters’ sources said.

In October last year, France’s oil major Total SA, mining and trading giant Glencore, and crude oil trader Gunvor had reportedly bid to buy 75 percent of Chevron’s South African downstream business.

In January 2016, Chevron said it was considering selling its 75 percent of its South African business, including a 110,000-bpd refinery in Cape Town, as part of a multi-billion-dollar divestment plan announced in 2014. Chevron operates in South Africa via Chevron South Africa (Pty) Limited, in which it has a 75 percent stake, while a consortium of Black Economic Empowerment shareholders and an employee trust own the other 25 percent. Chevron South Africa also has a network of Caltex service stations, one of the country’s top four petroleum brands, according to Chevron. The U.S. energy major also operates a lubricants plant in Durban, on South Africa’s east coast.

Now if Sinopec manages to snap up Chevron’s assets in South Africa, it would get its first refinery asset in Africa that would further expand the Chinese company’s fuel distribution network across the world.

Related: Is Kurdish Oil A Gamble Worth Taking?

The process of soliciting expressions of interest in the 75 percent shareholding is ongoing,” Chevron spokesman Braden Reddall told Reuters.

Rothschild & Co is advising Chevron on the sale of the South African assets, according to Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Dan on March 19 2017 said:
    Perfect timing for the new Chinese military base in Africa.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News