US-based Chevron has announced plans that it may sell 75 per cent of its South African business
The multinational energy corporation, which has had a presence in South Africa for more than a century, said the move was in line with a three-year asset sales programme it announced in 2014.
“This demonstrates Chevron's continuing focus on balancing our global portfolio with our long-term business priorities, and it is aligned with our previously announced US$15bn divestment programme,” said Mark Nelson, the company's president for international products, in a statement.
Chevron also has interests in a lubricants plant in Durban on the East coast, the company revealed.
Chevron has already disposed a number of assets in Africa's top crude exporter Nigeria, as oil majors globally have attempted to slash costs and streamline business models during low oil prices.
Brian Youngberg, an analyst at Edward Jones in St. Louis, recently noted in an email, “All companies are having to rationalize their operations and exit any location or business where there is limited scale or potential in a lower price environment.”