Chevron to sell stake in Australia's Caltex

Caltex sign Image copyright Getty Images

Chevron is to sell its 50% stake in Caltex Australia, the petrol station operator, for a reported 4.6bn Australian dollars ($3.6bn; £2.4bn).

The US energy giant said the sale reflected its plans to generate cash to support long-term priorities.

"It is aligned with our previously announced asset sales commitment," said Michael Wirth, executive vice president of downstream and chemicals.

Media reports said Chevron would sell the shares at A$34.20 each.

That is a near-10% discount from Caltex's closing share price on Friday of A$37.88.

Chevron added that it would continue to be one of Australia's largest foreign investors and the largest owner of natural gas resources in the country.

The move to sell its stake in Caltex would not alter the company's plans for liquefied natural gas (LNG) projects in Australia, Chevron said.

In January, Chevron, the second largest US oil producer, reported its lowest quarterly profit in five years as a result of the collapse in oil prices.

By the end of 2014, oil prices had halved from their peak in the middle of the year.

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