Petrochemicals firm Sasol
said on Friday it was considering buying a majority stake in Chevron's South
African assets, including a 110,000 barrels-per-day oil refinery and retail
stations.
Chevron, which has had a
presence in South Africa for more than a century, said in January it would sell
its 75 percent stake in its business in the country after making similar sales
in Nigeria due to weak oil prices.
"Sasol is working with
Chevron and its advisers in this regard," spokesman Alex Anderson said in
an email to Reuters.
The company, which is the
world's biggest maker of fuel from coal, is slashing costs due to the plunge in
oil prices by shelving major projects and cutting jobs.
Sasol owns coal mines,
refineries and service stations in South Africa and exports oil to several
regional countries.
"It's a strategic fit
as Sasol has been trying to develop its retail footprint in South Africa to get
a higher margin for its fuel," Sanlam Private Wealth equity analyst
Shiraaz Abdullah said.
He said due to limited
retail outlets, Sasol has been forced to sell its fuel at a lower wholesale
price to competitors rather than directly to consumers.
"It all comes down to a
decent price," he said.
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