Chinese oil company, China Petroleum and Chemical Corporation (Sinopec), Chevron’s Chinese potential buyer, claims that it has substantial financial resources to sustain the huge demands that come with managing Chevron’s South African assets.
To boot, Sinopec said that it would invest about R6 billion rand ($428 million) to refurbish facilities at Chevron’s refinery if its $900 million dollar bid to buy the business succeeded.
Sinopec, which faces stiff competition from global mining giant, Glencore International, has emerged as the front runner to acquire the majority shares in Chevron, based on the statement from South Africa’s Minister of Economic Development, Ibrahim Patel. Indications are that the bid could as well be a mere formality.
“Government will not choose to whom Chevron sells control of CSA, but we will ensure that proper public interest conditions, in line with the Competition Act, apply to whoever is the successful bidder.
“The commitment by Sinopec to invest in the refinery will enhance and increase effective output of locally refined oil products and improve health and safety standards in the refinery’s operation,” Patel said.
In its bid, Sinopec has committed to ensure that its operations benefit black-owned businesses, as well as retaining the bulk of the employee complement.