Neste to sell its base oils business to Chevron
Neste Corporation, Press Release, 4 October 2021 at 4.30 p.m. (EET)
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. 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.
“I want to thank our people in the base oils business who have been known for their pioneering spirit throughout the years. They have built the foundation for Neste to become one of the world’s leading producers of Group III base oils, and we can be extremely proud of that. Chevron being a leading manufacturer of base oil products is therefore an excellent company to nurture and develop the NEXBASE base oils business further,” says Neste’s President and CEO Peter Vanacker.
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. In connection with the divestment, Neste is exiting the joint venture with Bapco and Nogaholding, and will no longer have presence in Bahrain.
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 Q1/2022.
Neste Corporation
Susanna Sieppi
Vice President, Communications
Media inquiries: Please contact Neste’s media service, tel. +358 50 458 5076 / media@neste.com (weekdays from 8:30 a.m. to 4:00 p.m. (EET)).
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2020, Neste's revenue stood at EUR 11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products. Read more: neste.com
