Chevron in $1.1 billion sale of Canadian gas stations and refinery

Chevron in $1.1 billion sale of Canadian gas stations and refinery

Chevron (NYSE:CVX) has agreed the sale of its Burnaby oil refinery and gas stations in Canada to Parkland Fuel Corporation (TSE:PKI) for a fee of around US$1.1 billion.

The assorted assets, located East of Vancouver in British Columbia, include 129 gasoline stations, three terminals and the Burnaby oil refinery.

This divestment from Chevron, the second largest US-based oil firm, comes hot on the heels of the company’s consideration towards offloading its stake in the Canadian Athabasca Oil Sands project.

Consequently, the sale is part of company CEO John Watson’s attempts to raise as much as $10 billion from asset sales this year, which has seen a number of Chevron’s global assets go under the hammer.

However, for Parkland Fuel the purchase represents an opportunity to develop and strengthen the company’s position in British Columbia.

“This accretive acquisition further strengthens our supply-focused business model and adds significant scale with the premier Chevron retail brand and network in British Columbia,” said president and CEO of Parkland, Bob Espey.

@RGNonline