press release

Chevron Press Release - Chevron Signs Agreements To Sell UK Marketing Operations To Shell UK

SAN FRANCISCO, Oct. 20, 1997 -- Chevron Corp. today announced that it has signed an agreement to sell the marketing interests of Gulf Oil (Great Britain) Ltd. (GOGB), a wholly owned subsidiary of Chevron Corp., to Shell UK Ltd. Shell will purchase the GOGB retail network, lubricants and commercial fuels business.

GOGB has approximately 450 service stations in the United Kingdom and three wholly owned fuels terminals, which are located at Cardiff, West Bromwich and Ellesmere Port. Curran Petroleum Limited and Perlmans Petroleum Limited, GOGB's wholly owned distributors, are included in the sale.

Shell will acquire GOGB's interest in the Silvertown lubricants blending and packaging plant located in East London and GOGB's wholly owned subsidiary, De La Pena Lubricants Limited. GOGB and Elf Oil UK Ltd. will continue their joint lubricants manufacturing venture at Silvertown.

David Setchell, managing director of GOGB, said, "The sale of GOGB completes Chevron's strategy to withdraw from the UK downstream oil business.

"GOGB has been providing the UK with quality products and first-class customer service for more than 35 years," said Setchell. "I sincerely thank our employees for their exceptional commitment to the business over the years, and especially during this recent difficult period."

Chevron Corp. and Shell UK hope to complete the transaction during the fourth quarter of this year, subject to the required regulatory approvals.

In a separate transaction last month, GOGB signed an agreement with Texaco Limited to sell its 50 percent equity interest in the jointly-owned Pembroke Cracking Co. (PCC). PCC operates a 90,000 barrel-per-day catalytic cracking facility at Texaco's Pembroke Refinery in Wales.

The sale of PCC, which is subject to the completion of the sale of GOGB to Shell UK, is also expected to take place in the fourth quarter of this year.

Chevron plans to shut down GOGB's 115,000 barrel-per-day refinery located near Milford Haven, Wales. GOGB's headquarters building in Cheltenham also will be offered for sale later this year.

Chevron Corp. also today announced plans to sell the Gulf trademark in the UK and Ireland to Gulf Canada Resources Limited. Chevron will license the trademark to Shell UK while it rebrands the retail and distributor network and the lubricants business.

Updated: October 1997