US energy giant Chevron is looking to sell its $5 billion stake in Caltex Australia but says the decision won't affect its Gorgon and Wheatstone gas interests.
Chevron expects shares in oil refiner and distributor Caltex will be sold to a range of Australian and global institutional investors.
Executive vice president of downstream and chemicals Michael Wirth said Chevron's sale comes as part of a regular review of its portfolio and commitment to generate cash to support its long term priorities.
The massive sale, reportedly at a slight discount to its market value, does not alter Chevron's focus on moving Western Australia's $US54 billion Gorgon project and the $30 billion Wheatstone liquefied natural gas (LNG) projects towards start-up, president of international products, downstream and chemicals Mark Nelson said.
"Asia Pacific is a core strategic focus for Chevron's downstream business and we remain focused on ensuring our operations, portfolio and investments are well positioned to meet the region's growing demand for energy," he said.
Caltex had a market value of $10.1 billion on Friday, and recently reported a 48 per cent increase in underlying annual profit to $493 million.
It has been reducing its fuel refinery operations, and staff numbers, and looking to grow its distribution and marketing businesses.
Chevron's announcement came after the close of Friday's session on share market, in which Caltex shares gained 36 cents, or one per cent, to $37.88.
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