Sinopec close in on Chevron’s $1 billion South African assets

Sinopec close in on Chevron’s $1 billion South African assets

China Petroleum and Chemical Corp (Sinopec) is nearing the completion of a deal to buy a majority stake in Chevron’s (NYSE:CVX) South African assets, thought to be worth US$1 billion.

The deal would conclude an auction that has lasted for over a year, with the Chinese oil refiner set to make the final move after Total (LSE:TTA), Glencore (LSE:GLEN) and Gunvor also showed interest in the assets.

If the deal is completed, it will resemble the first major refinery asset in Africa for Sinopec, who are Asia’s largest oil refiner.

Sinopec are the latest in a long list of Chinese energy companies who have registered an interest in expanding their presence in Africa, including the China National Petroleum Corporation (CNPC).

Chevron first announced plans to sell its South African operations in January 2016.

The US multinational’s assets in the country include an 110,000 barrels per day refinery in Cape Town, along with a lubricants plant in Durban and a network of Caltex service stations.

@RGNonline