WSJ reporting Valero to buy UK refinery from Chevron
According to an article published online today by the Wall Street Journal (WSJ), Valero is close to buying a UK refinery from Chevron for $2 billion. The agreement was supposed to be announced at CERA Week today in Houston but was pushed back because final details are still being confirmed.
An excerpt from the article says:
Chevron's expected divestiture of its refinery in Pembroke, Wales, is the latest example of a trend. Large, integrated oil companies are reducing their exposure to the business of processing crude oil and selling products such as gasoline and diesel, in order to focus on exploration and production, which historically have been more profitable.
This has created opportunities for more specialized energy companies such as Valero, the largest independent refiner in the U.S., that are willing to weather the risks inherent in the sector. Refiners are caught between volatile crude-oil prices, their biggest cost, and uncertain demand during a fragile economic recovery. A Chevron representative declined to comment.
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