Sinopec nears deal to buy Chevron’s S. African as­sets?

New Straits Times - - Business -

NEW YORK/SIN­GA­PORE: China Petroleum and Chem­i­cal Corp (Sinopec) is near­ing a deal to buy Chevron’s South African oil as­sets for up to US$1 bil­lion (RM4.4 bil­lion) to se­cure its first ma­jor refinery on the con­ti­nent, sev­eral peo­ple fa­mil­iar with the mat­ter said.

Sinopec, Asia’s largest oil re­finer, was the last bid­der re­main­ing, and close to a deal with Chevron after an auc­tion that spanned more than a year for its refinery, re­tails busi­ness and stor­age ter­mi­nals.

French oil firm To­tal and com­mod­ity traders Glen­core and Gun­vor looked at the as­sets, Reuters re­ported last year.

The South Africa govern­ment’s de­sire to keep the refinery op­er­at­ing has nev­er­the­less proven to be a ma­jor stum­bling point for buy­ers who would pre­fer to con­vert the site into a more prof­itable stor­age ter­mi­nal, sources said.

Sinopec is in dis­cus­sions with the govern­ment on ways to keep the 110,000 bar­rels per day refinery in Cape Town run­ning, but talks could still fail, sources said.

Chevron spokesman Braden Red­dall said: “the process of so­lic­it­ing ex­pres­sions of in­ter­est in the 75 per cent share­hold­ing is on­go­ing”. Reuters

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