NEW YORK/SINGAPORE – China Petroleum and Chemical Corp (Sinopec) is nearing an agreement to buy a majority stake in Chevron Corp’s South African assets, which are estimated at $1 billion, two people familiar with the transaction said.
The sources said that Sinopec, Asia’s largest oil refiner, was the last bidder remaining, and close to completing a deal with the U.S. oil major.
If the deal is finalised, it will be Sinopec’s first refinery asset in Africa, forming a part of the Chinese major’s global fuel distribution network.
Sinopec declined to comment.
Chevron first announced plans in January 2016 to sell the stake in the business unit, which includes a 110,000-barrels-per-day refinery in Cape Town, South Africa.
Chevron spokesman Braden Reddall said “the process of soliciting expressions of interest in the 75 percent shareholding is ongoing.”
The remaining 25 percent interest is held by a consortium of Black Economic Empowerment shareholders and an employee trust. A second bidding round closed on Sept. 30, additional sources said.
(Reporting by Jessica Resnick-Ault in NEW YORK and Florence Tan in SINGAPORE; Additional reporting by Ron Boussa in NEW YORK, Dmitry Zhdannikov in LONDON, Joe Brock in JOHANNESBURG and Chen Aizhu in BEIJING; Writing by Anshuman Daga; Editing by Richard Pullin)