Neste to sell base oils business to Chevron

The state-run petroleum company Neste Corporation has signed an agreement to sell its existing base oils business to Chevron Corporation, one of the world's leading integrated energy companies, said Neste in a press release on Monday.

The agreement covers a combination of share and asset deals forming Neste's entire global base oils business.

As part of the divestment, the parties have also agreed on a long-term offtake for Neste’s base oils supply from Porvoo, Finland. With the same date, Neste has signed an agreement to exit its base oils joint venture with Bahrain Petroleum Company and Nogaholding.

Neste’s base oils have been produced in Porvoo, Finland and by a base oils joint venture with Bapco and Nogaholding in Bahrain.

The agreement with Chevron will cover Neste’s Porvoo base oils production volumes, its premium brand NEXBASE™, all formulation coverage associated with the brand, as well as a global marketing and distribution platform.

The parties are committed to ensuring a seamless transition to NEXBASE customers and all other stakeholders including employees.

The parties have agreed that the transaction price shall remain confidential. The transaction will not have a material effect on Neste’s financial position.

The completion of the divestment is subject to the approval of the competition authorities and customary closing conditions, with estimated completion date by the end of March next year.