Chevron Corp. announced Monday that its indirect wholly owned subsidiary, Texaco Nederland B.V., will sell its Netherlands manufacturing business and other assets to BP for approximately $900 million.
The transaction is expected to be finalized in the first quarter of 2007.
The Texaco Netherlands manufacturing businesses comprise interests in several joint-venture companies operating in the Rotterdam area, including a 31 percent interest in the Netherlands Refining Co.'s 400,000 barrel-per-day Nerefco Refinery, a 22.8 percent interest in a crude oil storage facility, various associated proprietary pipelines and a 31 percent interest in the 22.5 megawatt wind farm located onsite at the refinery.
BP currently owns the remaining 69 percent interest in the Nerefco Refinery and the adjoining wind farm, but holds no interests in the other operations.
The sales of the Netherlands operations is part of Chevron's strategic plan to focus its resources and capital investments in sectors where it has market and supply strength.
“Nerefco is a large, flexible refinery that is ideally configured to serve the growing demands for clean transport fuels, particularly diesel, throughout Europe,” said John Manzoni, chief executive of BP refining and marketing. “As sole owners we will be able to simplify the existing operations which were designed to meet the individual requirements of each party.”
Chevron Corp., an energy company, has over 55,000 employees, in about 180 countries.