Chevron Corp., the second-largest U.S. oil producer, is working with investment bank Rothschild & Co. on plans to sell a 75 percent stake in its South African unit, according to people familiar with the matter.
The sale may fetch about $1 billion and could attract interest from other companies in the industry as well as financial investors, the people said, asking not to be identified as the deliberations are private. The stake may also attract interest from energy firms in the Middle East, they said. The sale also includes Chevron’s business in Botswana and indicative bids for the assets may come this summer, one of the people said.
Chevron, the largest U.S. oil producer after Exxon Mobil Corp., said in January that it was considering selling the assets as part of a divestment program to counter a slump in energy markets. The oil major is also planning a sale of its geothermal assets in Asia, people familiar with the matter said previously.
The South African business operates a 110,000-barrel-a-day refinery in Cape Town, a lubricant plant in the eastern port city of Durban and markets its Caltex-branded products through more than 845 filling stations, according to its website.
Representatives for Rothschild and Chevron declined to comment.