Sinopec gets Africa stake with 75% of Chevron

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Sinopec gets Africa stake with 75% of Chevron

1:52 CAT | 24 Mar 2017

Reuters (file photo) / The company logo of Sinopec is displayed at a news conference in Hong Kong.

China’s Sinopec said on Monday that it had agreed to pay almost $1-billion (about R12.69-billion) for a 75% stake in Chevron ‘s South African assets, and for its subsidiary in Botswana, securing its first major refinery on the continent.

China Petroleum and Chemical, or Sinopec, Asia’s biggest oil refiner, said the assets include a 100000 barrel-a-day oil refinery in Cape Town, a lubricants plant in Durban, 820 petrol stations and other oil storage facilities. They also include 220 petrol station convenience shops across South Africa and Botswana.

Demand in South Africa for refined petroleum has increased by nearly 5% a year over the past five years to about 27million ton s a year, it said.

Sinopec said it would retain the entire workforce as well as the Caltex retailing brand for up to six years before rebranding.

The remaining 25% of the South African assets will continue to be held by a group of local shareholders, in accordance with South African regulations.

Reuters reported last week that Sinopec was the last remaining bidder in the auction which lasted more than a year and drew interest from French oil company Total and commodity traders Glencore and Gunvor.

Source: Reuters