• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 8 hours Can the World Survive without Saudi Oil?
  • 11 hours Sears files Chapter 11
  • 11 hours Natural disasters and US deficit
  • 8 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 8 hours China Is the Climate-Change Battleground
  • 1 day How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 5 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 4 hours $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 2 days How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 days COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 21 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 1 day Saudi A Threatens to Block UN Climate Report
  • 1 day German Voters Set to Punish Merkel’s Conservative Bloc
Oil Experts Divided As Iran Sanctions Loom

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

EIA Inventory Count Accelerates Oil Price Slide

EIA Inventory Count Accelerates Oil Price Slide

Oil prices continued to slide…

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