* Deal includes 538 petrol outlets in Pakistan
* Sale follows Total's purchase of Chevron's Egyptian retail
* Chevron sale following strategic review by U.S. energy
By Dinesh Nair and Michel Rose
DUBAI/PARIS, Sept 17 Total and its
joint venture partner have agreed to buy Chevron Corp's
retail distribution business in Pakistan, following a similar
move by the French energy giant to buy the U.S. firm's Egyptian
retail business in August.
TOTAL PARCO Pakistan Limited, a joint venture between Total
and Pak Arab Refinery Limited (PARCO), will acquire Chevron's
fuel marketing, logistics and aviation business in Pakistan.
The businesses includes 538 petrol stations, sources said,
declining to be named because the matter was private.
Total did not provide a value for the transaction. A
spokesman for Chevron was not available for comment. Chevron
operates under the Caltex brand in Pakistan and also has a
lubricant business which was not put for sale.
Large oil companies are shrinking their downstream
operations - which include refining and processing of crude oil,
as well as the marketing and distribution of products - to focus
more on high-margin exploration and production activities.
Royal Dutch Shell said in April it was considering
selling some of its Italian downstream assets including retail,
aviation and supply and distribution businesses. The company
agreed to sell its Egyptian downstream assets to Total earlier
New York-based oil and gas producer Hess Corp has
announced plans to exit its retail gasoline, marketing and
trading businesses after pressure from activist investors.
Chevron was nearing a sale of its downstream assets in
Pakistan and Egypt, sources told Reuters in May, in a deal which
was seen raising around $300 million for the U.S. oil major. The
company was conducting a separate sale process for both the
businesses, the sources said.
The second-largest U.S. oil company confirmed at the time
that it was conducting a strategic review of its fuels
operations in Egypt and Pakistan. However, it said this did not
include the lubricants business in Egypt and Pakistan.
Total said in August that it agreed to buy the Egyptian
retail network of U.S. energy company Chevron, in a move
it said would create its biggest marketing and services
subsidiary outside Europe. [ID: nL6N0GS27Z]
Citigroup Inc advised Chevron on the Egypt and
Pakistan sale process, according to the sources.