Thursday, April 18, 2024

Sale of Chevron operations halted


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ST. JOHN’S, Antigua – The Antigua and Barbuda Industrial Court has halted the planned sale of some of the regional operations of the American oil company, Chevron.
The Court ruled on Friday that the sale should be put on hold until a ruling is handed down in the severance dispute with employees in Antigua and Barbuda.
Chevron had announced that the transaction – the transfer of assets to French company Rubis – would be completed by March 31 to early April.
The Court has set April 7 for adjudicating on severance pay for the 24 Chevron fuel attendants at the V.C. Bird International Airport.
The workers took sick-out action twice this month over what their representative, the Antigua and Barbuda Workers Union (ABWU), said was Chevron’s failure to reach agreement with them on payment of severance and other entitlements.
On March 14 Labour Minister Dr Errol Cort submitted the dispute to the Industrial Court after a four-day ultimatum he gave Chevron to decide to pay severance passed without this being done.
In November last year, Chevron announced that it has agreed to sell its fuels marketing and aviation businesses in Antigua, Barbados, Grenada, Dominica, St. Lucia, St Vincent, Guyana, St. Kitts, French Guiana, Martinique, Guadeloupe, Trinidad, Nicaragua, Costa Rica and Belize to Vitogaz, S.A., a wholly-owned subsidiary of RUBIS, an international downstream petroleum company based in France.
The company said that transactions are expected to close in full by the third quarter 2011 following receipt of required local regulatory and government approvals. 
Under the terms of the agreement, RUBIS will acquire a network of 174 service stations operating under the Texaco brand, an equity interest in an associated refinery operation, proprietary and joint-venture terminals and aviation facilities, and Chevron’s commercial and industrial fuels business. 
“This sale is in line with our ongoing effort to concentrate downstream resources and capital on strategic global assets,” said Mike Wirth, executive vice president, Downstream & Chemicals, Chevron.
“By restructuring our worldwide portfolio, we intend to reduce capital employed, deliver stronger returns and achieve more profitable growth.” 
Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. (CMC)


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