Chevron inks deal to buy Australian downstream assets

Chevron Australia Downstream Pty. Ltd., a wholly-owned subsidiary of Chevron Corp., has signed a conditional share sale agreement with Puma Energy Holdings Pte. Ltd. subsidiary Puma Energy Asia Pacific BV to acquire all shares and equity interests of Puma Energy (Australia) Holdings Pty. Ltd. for $425 million (Aus.).

Puma Energy (Australia) Holdings and its subsidiaries hold assets including a network of company-owned and retailer-owned service stations in Australia, a commercial and industrial fuels business, owned or leased seaboard import terminals, and fuel distribution depots, Chevron said.

“The acquisition will provide Chevron with a stable market for production volumes from our refining joint ventures in Asia and create a foundation for sustainable earnings growth,” said Mark Nelson, executive vice-president for Chevron’s Downstream & Chemicals unit. “It will build on Chevron’s strong history of partnership in Australia and our global experience in fuels and convenience marketing and supply.”

The parties said they expect the transaction to close in mid-2020, subject to regulatory approvals and the satisfaction of customary closing conditions.

Puma Energy said it will use proceeds of the sale to pay down debt, in line with the company’s capital structure policy.

“This transaction marks another positive step forward in Puma Energy’s commitment to optimize our global portfolio and deleverage our balance sheet by the end of 2020. This follows the sale of our business operations in Indonesia and Paraguay, enabling us to pay down our debt and ensure we’re focused on those markets which will drive growth as part of our customer-focused 5-year strategy,” said Emma FitzGerald, Puma Energy’s chief executive officer.

Puma Energy’s bitumen business in Australia, however, will not be impacted by the proposed transaction, and the company will continue investing to enhance its service to bitumen customers, Puma Energy said.

Puma Energy’s Australian bitumen network spans the continent from the west to the east, consisting of six supply points with import and storage capabilities that provide its customers with access to bitumen across the country. As the largest bitumen supplier in Australia, Puma Energy (Australia) Bitumen Pty. Ltd.’s long-term growth strategy and investment program in the country entails plans to continue growing and developing its asset base to benefit customers, including the Australian road construction and maintenance industry in general, according to the Puma Energy’s bitumen unit website.