November 17, 2017

State company offers to buy Chevron refinery in South Africa

South Africa’s state-owned Strategic Fuel Fund (SFF) said on Wednesday it had offered to buy Chevron’s majority stake in the country’s oil refinery in Cape Town and other downstream assets as well as those in neighbouring countries.

“SFF has forwarded a commercial offer to Chevron and its financial advisers, in relation to the purchase of the 75% interest on offer,” the company said in a statement.

The SFF said it would purchase 75% of the refinery and assets such as retail stations and depots for an undisclosed amount.

A Chevron official said the firm would issue a statement later.

The SFF said it was offer was made as part of its mandate to ensure a security of supply of liquid fuels.

Chevron said in January it would sell its business in Africa’s most industrialised country after disposing of assets in Nigeria, in sales triggered by plunging oil prices.

The US oil major is a leading refiner and marketer of petroleum products in South Africa, where it has had a presence for more than a century.

The refinery processes 110,000 barrels of crude oil a day.

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.

Source: Reuters

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