Chevron’s wholly owned subsidiary Chevron Australia has signed a conditional share sale agreement to acquire all shares and equity interests of Puma Energy Australia for A$425m ($291m).
Under the agreement signed with Puma Energy Asia Pacific, Chevron Australia will buy the domestic commercial and retail fuels business of Puma Energy.
The latest move marks Chevron’s return to fuel distribution market in the country after it sold its half-share in refiner Caltex Australia in a $3.7bn deal in March 2015.
Puma Energy Australia and its subsidiaries own assets, including company-owned and retailer-owned service stations in Australia.
They also own a commercial and industrial fuels business, owned/leased seaboard import terminals and fuel distribution depots.
Puma Energy is 49%-owned by commodities trader Trafigura. The sale comes as part of the company’s move to rebalance its books after a decade-long spree of oil assets snapping, reported Reuters.
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By GlobalDataAccording to the news agency, Puma Energy is retaining its bitumen business in Australia.
Chevron Downstream and Chemicals executive vice-president Mark Nelson said: “The acquisition will provide Chevron with a stable market for production volumes from our refining joint ventures in Asia and create a foundation for sustainable earnings growth.
“It will build on Chevron’s strong history of partnership in Australia and our global experience in fuels and convenience marketing and supply.”
Expected to close during the middle of next year, the acquisition is subject to regulatory approvals and other customary closing conditions.
In August, Chevron started a carbon dioxide (CO2) injection system in Western Australia, which is located at the company-led Gorgon natural gas facility in Barrow Island.