Chevron won't spin off refining: CEO

HOUSTON Wed Aug 31, 2011 4:57pm EDT

Related Topics

HOUSTON (Reuters) - Chevron Corp (CVX.N) is not interested in spinning off its refineries into a separate company as Marathon Oil Corp (MRO.N) has done and ConocoPhillips (COP.N) plans to do, CEO John Watson told reporters in Houston on Wednesday.

"You should not look for Chevron to participate in anything like what ConocoPhillips or Marathon has done," Watson said after giving a speech to business leaders.

On June 30, Marathon's refining, transportation and retail businesses split off from the parent to became Marathon Petroleum Corp, (MPC.N) a move the company first considered in 2008 until the financial crisis put it on hold.

ConocoPhillips announced in mid-July that it would spin off its refining arm as well, creating the largest separate pure-play refining and exploration and production companies. ConocoPhillips is the smallest of the oil majors that include Chevron, Exxon Mobil Corp (XOM.N) and Royal Dutch Shell (RDSa.L).

Watson said ever-increasing development of liquefied natural gas, high-sulfur heavy crudes and natural gas liquids requires refining expertise and plants that can process them.

"It helps to be able to run those in your own refinery," he said. "There's never been a time when I have felt it was more important to be an integrated company."

Chevron operates seven refineries, most of which are in North America, and holds interests in seven more in the Asia-Pacific region, company spokesman Sean Comey said. (Reporting by Kristen Hays; Editing by Bob Burgdorfer and David Gregorio)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.