Chevron sells LPG retail business to Petron Corp.

Chevron Philippines, which owns the Caltex brand in the country, has sold its liquefied petroleum gas retailing business to rival company Petron Corp. Petron and Chevron are two of the three biggest oil players in the country. The two companies have not disclose the financial terms of the sale. In a statement, Chevron said the divestment to Petron “covers Chevron’s Caltex LPG branded dealerships, branded refillers, various equipment on loan, LPG cylinders and the use of Caltex LPG brand" for a duration of two years. Chevron said the sale is part of larger strategy to focus on its core business of marketing Caltex branded motor fuels and lubricants. “The deal with Petron was made on the basis of a commitment to sell the dealership network to a reliable and reputable LPG supplier," Chevron said. Petron is the Philippines’ biggest oil refiner. It is also number one in terms of LPG sales. “The local LPG business underwent evaluation for better alignment with Chevron’s global business portfolio," Chevron country chairman for the Philippines Randy Johnson said in the statement. Johnson said the company considered several options prior to the sale. Over the next few months, Chevron said Petron will integrate the newly bought LPG dealerships into its own network. Petron will also convert and rebrand Caltex LPG cylinders to its own “Gasul" brand cylinders over the next two years. - GMANews.TV