Bangchak Completes Acquisition of Chevron Hong Kong
Bangchak Corp Public Co Ltd said it had completed the purchase of Chevron Corp's fueling business in Hong Kong, though acquired stations continue to serve the Caltex brand for two years.
Chevron Hong Kong Ltd has now been renamed Bangchak Hong Kong after the Thai group bought 100 percent of Chevron Hong Kong's shares from Chevron Companies (Greater China) Ltd.
"As one of Asia's leading financial, trading, maritime, and aviation hubs, Hong Kong offers a strategic platform for regional expansion", Bangchak said in a statement.
"With its well-established retail, trading, and marine fuels businesses, Bangchak Hong Kong will strengthen the Group's international presence while creating opportunities to develop bio-based products and lower-carbon energy solutions in response to evolving market demand and commercial opportunities".
Bangchak chief executive Chaiwat Kovavisarach said, "Bangchak Hong Kong will serve as our trading and commercial hub in North Asia, connecting its retail, trading, and marine fuels businesses with Bangchak Group's broader network".
The acquired business operates 31 service stations, whose offering includes industrial and marine fuels and which are "supported by international-standard oil terminal and jetty facilities", Bangchak said February 13 announcing the agreement.
The parties also signed a licensing agreement allowing the sites to continue offering Caltex products for the first two years of transition "to ensure business continuity and maintain customer confidence", Bangchak said in another statement.
Bangchak has earmarked THB 35 billion ($1.05 billion) in investment across the group's operations for 2026-28.
Meanwhile Chevron is pursuing a five-year $10-15 billion divestment plan through 2028 to refocus investment on assets that offer "long-term value".
"From 2024 through January 2026, the company has generated approximately $9 billion of asset sales proceeds", the Houston, Texas-based company said in its annual report. "Looking ahead, the company expects $1-2 billion in annual asset sale proceeds through 2030".
In an earlier purchase from another United States energy giant, Bangchak in 2023 took over Exxon Mobil Corp's refining and service station assets in Thailand by acquiring Esso (Thailand) Public Co Ltd from ExxonMobil Asia Holdings Pte Ltd.
Karen McKee, then-president of ExxonMobil Product Solutions, said about the sale, "As we execute our strategy, ExxonMobil is focusing its investments on global production facilities to meet the world's demand for lower-emissions fuels and high-performance products, while divesting assets where others see the potential for greater value".
ExxonMobil says on its website it continues to market lubricants and chemicals in the Southeast Asian country.
To contact the author, email jov.onsat@rigzone.com
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