Chevron, owners of Texaco in the Cayman Islands and globally, has announced additional interests it holds in the Caribbean are for sale, just months after 174 Texaco stations it once owned throughout the region changed hands.
While the initial deal announced last year covered only the Eastern Caribbean, the company recently said its Texaco properties in the Cayman Islands and Jamaica also are for sale.
It is suspected that a decision will be made about the purchase of stations in the Cayman Islands and Jamaica by September, said Des Ebanks, assistant petroleum inspector.
“The deal would mean that at least the face of all Chevron/Texaco stations on the Island would change,” Mr. Ebanks said.
According to reports in the international press, the buyer of the 174 stations across the Eastern Caribbean is Vitogaz S.A., a subsidiary of French petroleum company Rubis. It is unclear whether that company is also going to be the purchaser of the stations in the Cayman Islands and Jamaica.
The Caribbean islands included in the initial deal were Antigua, Barbados, Grenada, Dominica, St. Lucia, St. Vincent, Guyana, St. Kitts, French Guiana, Martinique, Guadelope, and Trinidad. The company (Chevron/Texaco) is awaiting approval in the Central American nations of Belize, Nicaragua and Costa Rica.
Under the agreement, Rubis will acquire 174 stations operating under the Texaco brand, an equity interest in an associated refinery operation, proprietary and joint-venture terminals and aviation facilities, as well as commercial and industrial fuel business.
After Rubis’ acquisition of Chevron in these countries, half of the company’s revenue is expected to come from the countries mentioned above.
David Sterling, district manager at Chevron Caribbean, who operates out of Jamaica also told the Gleaner that the oil company wants a less complex structure for its global operations and is in the process of soliciting bids for more regional operations. Chevron, he said, was reducing its footprint in the region to invest its capital elsewhere in the global operation for better returns on investment and to strengthen its competitive position in a tough global industry.
Mike Wirth, Chevron’s executive vice president for downstream and chemicals recently said that, “By restructuring our worldwide portfolio, we intend to reduce capital employed, deliver stronger returns and achieve more profitable growth.”