Chevron Announces Agreement to Sell Netherlands Manufacturing Business to BP
ROTTERDAM, The Netherlands, March 5, 2007 -- Texaco Nederland B.V., an indirect wholly owned subsidiary of Chevron Corporation, today announced the signing of an agreement to sell its Netherlands manufacturing business and other assets to BP.
These businesses comprise interests in several joint-venture companies operating in the Rotterdam area, including a 31 percent interest in the Netherlands Refining Company'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 sale, which is valued at about $900 million plus working capital and hydrocarbon inventory, is expected to be completed during the first quarter of 2007, subject to regulatory approval.
The sales agreement supports the company's strategic objective to improve shareholder returns by focusing its resources and capital investments on maintaining leading positions in areas where it has market and supply strength.
Chevron Corporation is one of the world's leading energy companies. With more than 55,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
This news release contains forward-looking statements about the planned sales of Chevron's manufacturing, terminalling, transportation and alternate energy interests in the Netherlands. The statements are based on management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are the length of time required to complete the sales; the actual results of due diligence activities by the companies; terms of the final sales agreement; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: March 2007