Chevron Global Energy Inc. has entered into an underwriting agreement for the sale of its 50% interest in Caltex Australia Ltd (CAL).
Portfolio review
Commenting on the move, Michael Wirth, Executive VP, Downstream and Chemicals, said: "This transaction reflects Chevron's commitment to regularly review our portfolio and generate cash to support our long-term priorities. It is aligned with our previously announced asset sales commitment.
"We appreciate the strong performance of Caltex Australia over the many years we've been a shareholder, and look forward to a mutually beneficial supply and brand relationship for many years to come."
Mark Nelson, President, International Products, Downstream and Chemicals, added: "Asia-Pacific is a core strategic focus for Chevron's Downstream business and we remain focused on ensuring our operations, portfolio and investments are well-positioned to meet the region's growing demand for energy."
LNG focus
This announcement does not alter Chevron's focus on moving the Gorgon and Wheatstone LNG projects towards start-up.
The current trademark licensing agreement between Chevron and CAL will remain in effect following the transaction. Chevron will continue to ensure a supply of product is available to CAL to supply to its retail and reseller franchise network. Chevron is also committed to seeking long-term relationship opportunities with CAL.
Adapted from press release by Katie Woodward