Chevron to sell $5b share in Caltex
US oil and gas giant Chevron has ended months of speculation by confirming today that it intends to sell its $5 billion half-share of Caltex Australia.
It will end Chevron's long-standing investment in downstreat oil and gas in Australia though the company was quick to add it would have no impact on its focus on the Gorgon and Wheatstone LNG developments.
Chevron said it expected to its Caltex shares to be spread among Australian and overseas institutional investors.
"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,:" Chevron executive vice president, downstream and chemicals, Michael Wirth said.
"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."
Chevron said today's announcement did not alter its focus on moving Gorgon and Wheatstone towards start-up, and reiterated that it was "one of Australia's largest foreign investors and is the largest holder of natural gas resources in the country".
The trademark licensing agreement between Chevron and Caltex will remain in effect following the share sale.
Chevron said it would continue to ensure "a reliable, high-quality supply of product is available to Caltex to supply to its retail and reseller franchise network".
"Chevron is also committed to seeking long-term relationship opportunities with CAL," it added.
Chevron's announcement came after the end of trading on the ASX, with Caltex closing up 36/c at $37.88.
Caltex is yet to comment on its biggest shareholder's announcement.
ENDS
Mark Nelson, president, International Products, Downstream and Chemicals, Chevron, said: "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."
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is
