press release

Chevron Press Release - Chevron Enters Exclusive Negotiations With Clark

SAN FRANCISCO, March 24, 1994 -- Chevron U.S.A. Products Co. today announced it has entered into exclusive negotiations with Clark Refining & Marketing, Inc., headquartered in St. Louis, Mo., regarding the sale of Chevron's Port Arthur, Texas, refinery.

If negotiations lead to a final agreement, and approval is received from appropriate government agencies, refinery ownership could be transferred by early in the fourth quarter.

Chevron plans to continue operating the petrochemical portion of the facility, which is highly integrated with the 177,000 barrel-per-day fuels refinery. The petrochemical facility makes benzene, cumene, ethylene and other chemicals for Chevron Chemical Co.In addition, Chevron U.S.A. will retain its lube oil packaging and distribution center at Port Arthur.

"Clark's proposal to buy the Port Arthur Refinery is the most attractive for Chevron's stockholders, employees and customers," said Peter McCrea, vice president in charge of Chevron's asset sales team. "And since we will retain our petrochemical operations, we are pleased with Clark as a potential business partner."

"I'm excited that all of our employees' hard work to convert this into a competitive refinery is paying off," said Lance Gyorfi, refinery manager. "I'm confident they'll continue to progress in making this refinery a top performer in the United States."

Chevron successfully converted the refinery to a streamlined configuration in 1992, which sharply improved its efficiency.

Chevron announced last May its plan to sell both the Port Arthur and Philadelphia refineries as part of a strategy to better focus its capital and resources in the company's refining and marketing business. Last month, Chevron signed a letter of intent to sell the Philadelphia refinery to Sun Company, Inc.

Updated: March 1994