Last week, US oil major Chevron said it plans to sell 75% of its South African business unit which includes a 110,000 barrel a day refinery in Cape Town.
Chevron is a leading refiner and marketer of petroleum products in South Africa, the most industrialised economy in Africa, where it has had a presence for more than a century. Chevron said its call for expression of interest was in line with a three-year asset sales programme it announced in 2014.
“This demonstrates Chevron's continuing focus on balancing our global portfolio with our long-term business priorities, and it is aligned with our previously announced $15bn divestment program,” said Mark Nelson, the company's president for international products, in a statement.
Besides the Cape Town refinery, Chevron also has interests in a lubricants plant in Durban on the east coast. Its network of Caltex service stations makes it one of South Africa's top five petroleum brands, according to its website.
Chevron has already disposed of several assets in Africa's top crude exporter Nigeria, as oil majors globally looked to cut costs and streamline business models in an over-supplied oil market and plunging prices.
Chevron Corporation, through its subsidiaries, engages in the petroleum, chemicals, and power and energy operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids plant.
The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals and fuel and lubricant additives, as well as plastics for industrial uses.
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