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Sasol mulling bid for Chevron assets

Jul 01 2016 16:31
Paul Burkhardt and Dinesh Nair

Johannesburg - Sasol, a South African fuel producer, said its "assessing the opportunity" of making an offer for Chevron’s assets in the region, including a refinery and filling stations.

"Sasol is working with Chevron and its advisers in this regard," Alex Anderson, a spokesperson for the Johannesburg-based company, said in an e-mail on Thursday.

Chevron put up for sale its 75% stake in the South African unit in January as part of a three-year divestment programme announced in 2014.

The Chevron unit operates the 110 000-barrel-a-day Cape Town refinery, a lubricant plant in the eastern port city of Durban and markets its Caltex-branded products through more than 845 filling stations, according to its website.

The sale may fetch about $1bn, people familiar with the matter said in March.
 
Sasol’s interest in what represents about a fifth of South Africa’s oil-refining capacity comes as the company implements programs to save R75bn through 2018 following the slump in commodity prices.

The Department of Energy said on Thursday it will investigate a bid by one of its own entities for the Chevron assets after the Strategic Fuel Fund failed to seek approval for its offer from the minister.

The country’s official opposition party, the Democratic Alliance, said it plans to ask the National Treasury to block a potential deal involving the Strategic Fuel Fund as the money could be better spent on boosting economic growth.

sasol  |  chevron  |  mining
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