South Africa’s Strategic Fuel Fund (SFF), which manages the country’s fuel reserves, on Wednesday said it had offered to buy Chevron’s majority stake in the country’s oil refinery in Cape Town and other downstream assets, including those in neighbouring countries.
“SFF has forwarded a commercial offer to Chevron and its financial advisers, in relation to the purchase of the 75 percent interest on offer,” the company said in a statement.
The SFF said it would buy 75 percent of the refinery and assets such as retail stations and depots for an undisclosed amount.
Chevron had in January said it was looking for buyers for 75 percent of its South African business unit, as part of a three-year asset divestment program announced in 2014.
The U.S. oil major which has been operating in South Africa for over a century is a leading refiner and marketer of petroleum products in the country. It owns a 110,000 barrel a day refinery in Cape Town and has interests in a lubricants plant in Durban. It markets its products through a network of Caltex service stations. Caltex is a petroleum brand name of Chevron Corporation, created in 1936 in a partnership with Texaco.
The SFF said its offer was made as part of its mandate to ensure a security of supply of liquid fuels.