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BP Agrees to Buy Chevron Unit for $900 Million

BP said Monday it has agreed to buy Chevron's Netherlands manufacturing company, Texaco Raffinaderij Pernis, for around $900 million, excluding working capital and hydrocarbon inventory.

BP will acquire Chevron's 31% minority shareholding in the Netherlands Refining, or Nerefco, Chevron's stake in the jointly owned wind farm located at the refinery and shareholdings in the nearby crude oil terminal and storage facility and a number of associated pipelines.

The deal, which is expected to be completed during the first half of the year, will make the Nerefco Refinery a 100% BP owned asset.

"Nerefco is a large, flexible refinery that is ideally configured to serve the growing demands for clean transport fuels, particularly diesel, throughout Europe," says John Manzoni, chief executive of BP refining and marketing. "As sole owners we will be able to simplify the existing operations which were designed to meet the individual requirements of each party."

BP shares fell 1.7% at 507.5 pence ($9.75) on the London Stock Exchange.