If reports that China’s Sinopec plans to buy Chevron’s South African assets for $1bn are true, it would be good news for the government’s drive to introduce Euro-V fuel standards, BMI Research said in a note on Tuesday. Reuters reported on March 17 that Sinopec was the sole remaining bidder for Chevron’s 75% stake in its South African business, which includes a fuel refinery in Cape Town, about 800 Caltex-branded service stations, and a lubricants plant in Durban. The remaining 25% of Chevron’s South African business is owned by black economic empowerment (BEE) partners and an employee trust. French oil firm Total, and commodity traders Glencore and Gunvor bowed out of the auction because of the South African government’s desire to keep Chevron’s 110,000 barrels a day Cape Town refinery running. This was a major stumbling point because they believed the site could be more profitably used as a storage terminal, Reuters said, quoting industry insiders who declined to be named. "The So...
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