Sinopec has signed a sales and purchase agreement with Chevron Global Energy Inc to acquire its 75 percent stake in Chevron South Africa (Proprietary) Ltd and its 100 percent holding in Chevron Botswana for about $900 million, the company announced on March 22. The remaining 25 percent stake of the Chevron South Africa is held by local shareholders, in accordance with South African regulations. The agreement has been filed with the Chinese government and remains subject to regulatory approvals in South Africa and Botswana.
The acquired assets include a 5 million tonnes-per-year oil refinery in Cape Town, a lubricants plant in Durban, as well as more than 820 petrol stations, 220 convenience stores and other oil storage and distribution facilities across South Africa and Botswana. With stable economic development, the South Africa and Botswana have development potential in petrochemical industries. The demand in South Africa for refined petroleum has increased by nearly 5 percent annually over the past five years, to a current total of about 27 million tonnes.