trending Market Intelligence /marketintelligence/en/news-insights/trending/7ki2u37rvgg9-c11wvqzuw2 content esgSubNav
In This List

Glencore, partner looking to purchase Chevron's South African oil assets

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Glencore, partner looking to purchase Chevron's South African oil assets

Glencore PLC and Off The Shelf Investments Fifty Six (RF) Proprietary Ltd are in the running to purchase Chevron Corp.'s South African assets in a 75/25 joint deal estimated to be worth US$900 million, a source familiar with the matter told S&P Global Market Intelligence on June 6.

Business Day reported previously that Glencore and South Africa's Public Investment Corp., which invests the pensions of civil servants, could emerge in a 50/50 joint bid to scoop up the assets, which include a 100,000-barrel per day refinery in Cape Town and more than 800 gas stations in South Africa and Botswana.

In 2017, Chevron agreed to sell its 75% stake in the assets to China Petroleum & Chemical Corp., or Sinopec, for $900 million. However, as a 25% stakeholder and Chevron's black empowerment partner, or BEE, the minority investor group partner Off the Shelf, backed by Glencore, exercised its pre-emptive right on the stake. Companies operating in South Africa are required to have a BEE partner with a shareholding of around 25%.

Braden Reddall, Chevron's senior external affairs adviser for downstream, midstream and corporate affairs, declined to comment on the status of the African asset sale.