• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 3 hours Iran Is Winning Big In The Middle East
  • 4 hours Trump cancels Denmark visit amid spat over sale of Greenland
  • 7 hours Nor Chicago, nor Detroit: Killings By Police Divide Rio De Janeiro Weary Of Crime
  • 5 hours Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 43 mins Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 3 hours US to Drown the World in Oil
  • 1 day Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 8 hours With Global Warming Greenland is Prime Real Estate
  • 6 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 18 hours OPEC will consider all options. What options do they have ?
  • 1 day A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 2 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 23 hours What to tell my students
Is Renewable Hydrogen A Threat To Natural Gas?

Is Renewable Hydrogen A Threat To Natural Gas?

SoCalGas and German Electrochaea have…

Total, Gunvor, Glencore Vie To Buy $1B Chevron Assets In South Africa

Downstream Assets

France’s oil major Total SA (NYSE:TOT), mining and trading giant Glencore, and crude oil trader Gunvor have bid to buy 75 percent of Chevron’s (NYSE:CVX) South African downstream business estimated to be worth US$1 billion, Reuters reported on Tuesday, quoting three industry sources.

In January of this year, Chevron said it was mulling over 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 75 percent, while a consortium of Black Economic Empowerment shareholders and an employee trust own the other 25 percent.

According to Reuters sources, the second bidding round for Chevron’s South African downstream business ended on September 30. The selling price is put at US$1 billion for the business in South Africa and neighboring Botswana.

Total, Glencore and Gunvor are some of the frontrunners for the bid.

“We might possibly get a (preferred bidder) decision by the first quarter of next year,” one source said, as quoted by Reuters.

Chevron, on the other hand, said in an email to Reuters via spokesman Braden Reddall that the bidding was still ongoing, and that the company’s policy is not to announce details of “commercial activities”.

In June of this year, South Africa’s state-held Strategic Fuel Fund (SFF) expressed interest in Chevron’s local business.

It’s not only downstream businesses that the U.S. major is seeking to offload. In a bid to raise cash with the oil price rout, Chevron is also poised to divest upstream assets in Asia worth US$5 billion.

However, the U.S. company’s strategy is not only about selling assets. Chevron approved in July a US$37-billion expansion of the Tengiz oilfield in Kazakhstan, which it operates in consortium with ExxonMobil (NYSE:XOM) and Russia’s Lukoil. Plans are to bolster production to 39 million tons of crude per year, or 850,000 barrels per day, by 2022.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play