DLA Piper has advised China Petroleum and Chemical Corporation, otherwise known as Sinopec, on its acquisition of Chevron Global Energy's 75 per cent of the shares in Chevron South Africa Limited and one hundred per cent of the shares in Chevron Botswana Limited
Chevron South Africa and Chevron Botswana collectively form one of the largest integrated downstream oil businesses in sub-Saharan Africa. It is focused on the refining and marketing of road transportation fuels and other refined products primarily through a network of over 800 sites serving motorists across South Africa and Botswana. The deal heralds Chevron's exit from, and Sinopec's entry into, the South African and Botswanan downstream markets.
Chevron South Africa's refinery in Cape Town has a crude processing capacity of over 100,000 bpd and is the only refinery in the Western Cape. It supports the marketing operations of Chevron South Africa and Chevron Botswana as well as supplying a significant portion of refined product demand in the wider region.
Carolyn Dong, Head of Energy in China, and Charles Morrison, Head of the London Oil and Gas team, co-led the deal for DLA Piper. Following public announcement of the deal, Carolyn Dong noted that: "Africa is a very important market for Chinese investment and this deal forms part of that wider economic and trading relationship, especially as Chinese companies increase their investment in line with China's 'One Belt One Road' trade initiative."
Completion of the deal is subject to receiving necessary approvals.