Inspectioneering
News

Parkland Fuel to Buy Chevron Canada's Downstream Fuel Business

Reuters, April 19, 2017
Reuters

Chevron Corp, the second-largest U.S.-based oil company, has sold its Canadian gasoline stations and refinery in British Columbia to Parkland Fuel Corp, a marketer of petroleum products, for C$1.46 billion (US $1.09 billion). Parkland Fuel said it would acquire Chevron's refining and marketing operations in Canada and pay an additional $186 million toward working capital for the acquired business. The acquisition adds scale to Parkland and gives the company "significant supply infrastructure and logistics capability to support Parkland's existing operations," Parkland CEO Bob Espey said in the statement.

The assets include 129 gasoline stations, three terminals and the Burnaby oil refinery, located east of Vancouver. The refinery can process 52,000 barrels of oil a day. It does not process bitumen, the heavy, tar-like substance extracted from Canada's oil sands. Reuters previously reported that Chevron had retained Goldman Sachs to sell the plant. Chevron is also exploring the sale of its 20 percent stake in Canada's Athabasca Oil Sands project, which could fetch about $2.5 billion, Reuters reported last week.

Last year, Chevron posted its first annual loss since 1987. The company is working on a two-year plan to sell $5 billion to $10 billion in assets in 2016 and 2017. The company, aiming to achieve neutral cash flow this year, is also boosting spending on its low-cost Permian shale operations.

 

(Reporting by Gayathree Ganesan and Jessica Resnick-Ault; Editing by Savio D'Souza and David Gregorio)

Click here to read the full article from Reuters.

Copyright 2017 Thomson Reuters. Click for restrictions.

Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.

Interested in equipment reliability & integrity? Sign up for weekly updates.

Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Case Studies

Learn from the experience of others in the industry.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Acronyms

Commonly used asset integrity management and inspection acronyms.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.