SINOPEC has bought a 75% stake in Chevron South Africa and 100% of Chevron Botswana for US$900m.
Chevron South Africa’s assets include a 5m t/y refinery in Cape Town, a lubricants plant in Durban, various oil storage and distribution facilities, more than 820 petrol stations and 220 convenience stores. Chevron Botswana also has oil storage and distribution facilities.
The remaining stake in Chevron South Africa will be retained by existing local shareholders, as per South African regulations. The deal must still be approved by the South Africa and Botswana governments.
Sinopec says that as economic development in South Africa and Botswana is stable, the countries’ petrochemical industries offer a good potential for development. In South Africa, demand for refined petroleum products has increased by 5%/y over the past years.
Chevron confirmed to The Chemical Engineer that it had signed sales and purchase agreements with Sinopec. A Chevron spokesperson said that the company selected Sinopec’s bid over others it had received as it offered better terms and conditions, including a commitment to operate the businesses as going concerns.
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