Uchenna Izundu
OGJ International Editor
LONDON, Mar. 27 -- Chevron Africa Holdings Ltd. completed the controversial sale of its Nigerian fuels marketing business to Corlay Global SA in its efforts to reduce its holdings in the downstream sector.
Corlay is a Panamanian company owned by an Africa-based consortium comprising MRS Holdings Ltd. and Petroci Holding. The deal for the 60% equity stake in Chevron Oil Nigeria PLC was first agreed last September and an agreement in principle closed it last week.
Chevron said its upstream operations in Nigeria were not affected by the sale. No additional details of the transaction were disclosed. Mike Wirth, executive vice president of Chevron, said, "We are increasing efficiency and improving returns by shrinking our marketing footprint to better align with our refining operations."
The sale was controversial after a Nigerian firm Zenon Petroleum and Gas Ltd., which holds a 19% stake in Texaco, applied for a court order to stop it on the grounds that it would be against the interests of other shareholders.
Nigeria's senior oil workers' union also challenged the deal as they were worried about outstanding labor issues.
Contact Uchenna Izundu at [email protected].
