Chevron Seeks Buyers for 75% Stake in South African Unitby and
Sale would be part of divestiture plan announced in 2014
Chevron rebalancing global assets, business priorities
Chevron Corp. said it was considering selling its 75 percent stake in its South African unit.
Chevron has made a decision to solicit expressions of interest for the stake, a sale that would form part of a three-year asset divestment program announced in 2014, the San Ramon, California-based company said in an e-mailed statement on Thursday.
“This demonstrates Chevron’s continuing focus on balancing our global portfolio with our long-term business priorities,” Mark Nelson, Chevron’s president of international products, said in the statement.
Chevron’s South African unit operates a 110,000-barrel-a-day refinery in Cape Town, a lubricant plant in the eastern port city of Durban and markets its products through more than 845 Caltex filling stations, according to its website.
Chevron rose 2.3 percent to $80.79 at 12:51 p.m. in New York.
Laura Sweeney, a company spokeswoman, declined to give a time frame for the asset sale or to say which companies have expressed interest.
Today’s crude market, which has fallen 75 percent over the past 19 months, necessitates such a deal, Brian Youngberg, an analyst at Edward Jones in St. Louis, wrote Thursday in an e-mail.
"All companies are having to rationalize their operations and exit any location or business where there is limited scale or potential in a lower price environment," he wrote. "It is small, but a sign of the times."