Neither Chevron Corporation (NYSE:CVX) nor TOTAL S.A. (ADR) (NYSE:TOT)’s websites mention the recent deal between these two companies. However, digital outlets have echoed Chevron’s sale of its fuel distribution network in Pakistan. “Total and its partner PARCO confirm that they have reached an agreement with Chevron to acquire its fuel marketing businesses of retail, commercial and industrial sales, logistics and aviation in Pakistan,” a company spokesman for Total said. Adding that, “This acquisition will strengthen Total’s position in Pakistan and notably in Total Parco Pakistan Ltd, a joint venture between Total SA and Pak Arab Refinery Ltd (PARCO).” The deal is said to double the distribution network held by Total in the Asian country.
More, no numbers concerning the price of the sale or time table for the completion of the deal have been mentioned, and both parts are waiting on government officials’ approval to complete the transaction. However, the deal is expected to be completed sometime before mid-2014, with the total transfer of 538 petrol stations, and it is known that Chevron will retain the lubricant side of its business in Pakistan. The strategy is coherent with what has been done for operations in Egypt, where Chevron Corporation (NYSE:CVX) has also exited the downstream side of the business, while retaining the lubricants segment.
On another note, Chevron has recently struck a deal with Argentinian authorities, kick-starting a much heated debate among politicians and civil representatives. The deal came as a surprise to many because it is argued to compromise the sovereignty over natural resources, and a reversal over government arguments concerning YPF SA (ADR) (NYSE:YPF)’s nationalization in 2012. Nevertheless, the deal was approved at Congress and the bond between YPF and Chevron sealed.
Chevron Corporation (NYSE:CVX)’s operations in Ecuador continue to bad publicity. This time around, President Correa is spearheading a boycott campaign against the oil giant in response to a legal demand presented at the International Court of Justice. Chevron argues the government has failed to comply with international bilateral agreements, while Mr. Correa points to the damage caused by oil spills in the Amazonas as evidence for the absurdity of the claim.
Disclosure: Jodor Jalit holds no position in any of the mentioned stocks.