The American oil and gas company Chevron Corp. Seeks to expand access to the petrochemical sector and is ready to buy out Phillips 66 Company's stake in the Chevron Phillips Chemical Co. (CPChem) joint venture, subject to agreement from Phillips 66. This is reported by foreign media.
According to the agreement between the companies, Chevron and Phillips 66 have the right of pre-emptive share repurchase in the joint venture. Elliott believes that 50% of the shares owned by Phillips 66 in CPChem should be sold in order to focus on the development of the core fuel production business.
Elliott Investment Management L. P., a hedge fund that previously published a restructuring plan for Phillips 66, believes that if sold, the value of the stake could reach about $15 billion, taking into account the estimated profitability of chemical products, which is currently at multi-year lows.
In 2000, Chevron and Phillips 66 created the CPChem joint venture, combining two medium-sized chemical companies. After building highly profitable plants in the Middle East and along the coast of the Gulf of Mexico, CPChem became the 32nd largest chemical company in the world by revenue.
CPChem is developing several development projects, including an $8.5 billion polymer manufacturing plant in Orange, Texas, and a $6 billion complex in Qatar. Both plants will use cheap ethane as a raw material, which will give them a competitive advantage over plants in Europe and Asia using more expensive naphtha.
Chevron is currently focused on completing the acquisition of Hess Corp. for 53 billion at the end of 2025 and is not negotiating to acquire a stake in Phillips 66.
CPChem is a 50/50 joint venture between Chevron and Phillips 66, founded in 2000 as part of the merger of the chemical divisions of Chevron and Phillips Petroleum Company. The company is managed by a board of directors. The headquarters is located in Woodlands, Texas,
Chevron Corp. — the largest American energy company and one of the largest corporations in the world. The main (in terms of proven reserves) deposits developed by the company are located in the USA (29%), Australia (20%) and Kazakhstan (18%). The company operates a wide network of gas stations under the Chevron, Texaco and Caltex brands. Chevron is a supplier of aviation fuel at 90 airports around the world.
Phillips 66 is an American oil transportation and refining company. The company offers a wide range of services, including commercial business development, human resources management, communications, information technology and lubricants. The headquarters is located in Houston, Texas.
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