The company is selling its Chevron Ltd unit, which holds the 220,000 barrel per day refinery, for $730m, plus an additional payment estimated to be $1bn for the unit’s inventory and other items.
Chevron Ltd also holds about 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.
The transaction is expected to be completed during the second half of 2011.
Chevron Downstream & Chemicals executive vice president Mike Wirth said that this sale is consistent with the company’s global strategy to focus its business on markets where it is well-positioned to deliver strong returns for its shareholders.
Chevron will retain its upstream, lubricants and Oronite additives businesses in Europe, as well as its aviation business in Sweden, Greece and the Benelux.
