Chevron has reached an agreement with Valero Energy Corporation to sell Chevron Limited, the entity that holds the 220,000 barrel per day Pembroke Refinery and other downstream assets in the United Kingdom and Ireland. The sale price is US$730 million, plus an additional payment estimated to be $1 billion for Chevron Limited’s inventory and other items.
“We are pleased with the value generated from this transaction,” said Mike Wirth, executive vice president, Chevron Downstream & Chemicals. “This sale is consistent with our global strategy to focus our business on markets where we are well-positioned to deliver strong returns for our shareholders.”
Aside from the Pembroke facility, Chevron Limited also holds approximately 1,000 Texaco-branded retail service stations in the UK and Ireland, a commercial and industrial fuels business, seven equity-owned terminals, shareholdings in four pipelines, eight aviation facilities and related support and trading operations.
Chevron will retain its upstream, lubricants and Oronite additives businesses in Europe, as well as its aviation business in Sweden, Greece and the Benelux.
“We’re concentrating our downstream portfolio primarily in North America and the Asia-Pacific region,” said Wirth, “markets where we enjoy our greatest competitive strength and opportunities for growth.”
Chevron recently reached a sales agreement for most of its downstream assets in Spain. Since 2010, the company has agreed to sell downstream assets in more than 20 other countries, mostly fuels marketing businesses in the Caribbean and southern Africa. These transactions are expected to be concluded during 2011 as necessary regulatory approvals are received.
Chevron is soliciting bids for certain operations in the Caribbean and select Central America markets. Chevron will continue current downstream operations in Colombia, El Salvador, Guatemala, Honduras, Panama, Mexico and Brazil.
