press release

Chevron Press Release - Chevron Sale Of Port Arthur Fuels Refinery To Clark Becomes Final Today

SAN FRANCISCO, Feb. 27, 1995 -- Chevron U.S.A. Products Co. and Clark Refining & Marketing Inc. today announced they have concluded the sale of Chevron's Port Arthur, Texas, fuels refinery to Clark.

Representatives of the two companies signed the closing papers today in Houston.

"We're very pleased we've been able to successfully conclude the sale to Clark," said Dave O'Reilly, president of Chevron U.S.A. Products Co.

Chevron's preliminary earnings for the fourth quarter and year 1994 included a $98 million after-tax charge for closure of the refinery. With completion of the sale today, this charge will be reversed to 1994 income, resulting in earnings of $623 million for the fourth quarter and $1.693 billion for the year 1994.

Port Arthur will continue to be important for Chevron, O'Reilly said. Chevron Chemical will operate the petrochemical facility, which makes ethylene and other chemicals, and Chevron U.S.A. will retain its lube oil packaging and distribution center at Port Arthur.

The 180,000 barrel-per-day Port Arthur facility is the second of two refineries that Chevron has sold recently for strategic reasons. Last Aug. 4, Chevron closed the sale of its 177,000 barrel-per-day Philadelphia refinery to Sun Company, Inc. Chevron had announced in May 1993 its intention to sell both refineries as part of a strategy to better focus the capital and resources of its U.S. refining and marketing business.

Updated: February 1995