Sinopec Buys First Major Refinery in Africa from Chevron

Source: Reuters 3/22/2017, Location: Africa

China's Sinopec will pay almost $1 billion for a 75 percent stake in Chevron Corp's South African assets and its subsidiary in Botswana to secure its first major refinery in Africa, the companies announced. China Petroleum and Chemical Corp, or Sinopec, Asia's largest oil refiner, said the assets include a 100,000 barrel-per-day oil refinery in Cape Town, a lubricants plant in Durban as well as 820 petrol stations and other oil storage facilities.

Chevron Global Energy Inc said in a statement that Sinopec's bid was selected in part because of the better terms and conditions it offered, including a commitment to operate the businesses as going concerns and the opportunity to reap strategic value for its longer-term strategy in Africa.

The deal, which includes 220 convenience stores across South Africa and Botswana, is subject to regulatory approval. With a growing middle class, demand in South Africa for refined petroleum has increased by nearly 5 percent annually over the past five years, to a current total of about 27 million tonnes, Sinopec said.

Sinopec in 2012 partnered South Africa's national oil company PetroSA to help develop a new greenfields refinery that has subsequently been shelved due to high costs. It said it would retain the whole workforce as well as the existing Caltex brand for the retail fuel stations for up to six years before launching a rebranding strategy.

The remaining 25 percent of the South African assets will continue to be held by a group of local shareholders, in accordance with South African regulations. Reuters reported on Friday that Sinopec was the last remaining bidder in the auction which lasted more than a year and drew interest from French oil firm Total and commodity traders Glencore and Gunvor.


Brazil >>  6/24/2022 - Petrobras, following up on the release disclosed on 06/23/2022, informs that it signed with BW Energy Maromba do Brasil Ltda (BWE), the contracts for ...
Brazil >>  6/23/2022 - Petrobras, following up on the release disclosed on 06/14/2022, informs that its Executive Board, in a meeting held, approved the sale of its total st...

Brazil >>  6/23/2022 - BW Energy has been notified that the Company’s offer to acquire the Golfinho and Camarupim Clusters offshore Brazil has been approved by the Petrobras...
Brazil >>  6/22/2022 - Petrobras, following up on the release disclosed on 07/28/2021, informs that the Administrative Council for Economic Defense (CADE), in a court sessio...

Canada >>  6/22/2022 - EverGen Infrastructure Corp., Canada’s renewable natural gas (“RNG”) infrastructure platform, announces that it has been featured in a broadcast via N...
India >>  6/21/2022 - The Board of ThomasLloyd Energy Impact Trust plc, the renewable energy investment trust providing direct access to sustainable energy infrastructure i...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.