Thursday 27th April, 2017
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Chinese firm nears deal to buy Chevron's South African assets

Chinese firm nears deal to buy Chevron's South African assets

China’s Sinopec is nearing a deal to buy Chevron’s South African oil assets for up to $1 billion to secure its first major refinery on the continent, sever­al people familiar with the mat­ter said.
 
China Petroleum and Chemi­cal Corp, or Sinopec, Asia’s larg­est oil refiner, was the last bid­der remaining, and close to a deal with Chevron after an auc­tion that spanned more than a year for its refinery, retails busi­ness and storage terminals.
 
French oil firm Total and commodity traders Glencore and Gunvor looked at the as­sets, Reuters reported last year.
 
The South Africa govern­ment’s desire to keep the refinery operating has nevertheless prov­en to be a major stumbling point for buyers who would prefer to convert the site into a more prof­itable storage terminal, sources said.
 
Sinopec is in discussions with the government on ways to keep the 110,000 barrels per day refin­ery in Cape Town running, but talks could still fail, sources said.
 
The sources declined to be identified because they were not authorised to discuss the matter publicly.
 
Chinese oil companies and merchant traders have become more visible in chasing refinery assets that come on the market as oil majors reshape asset portfolios.
 
Sinopec declined to comment.

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