Neste to sell its base oils business to Chevron

Parties have also agreed on a long-term offtake for Neste’s base oils supply from Finland, and Neste´s exit from its base oils JV with Bapco and Nogaholding in Bahrain.

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. With estimated completion date by the end of Q1/2022, 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, according to a company’s press release.

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 completion of the divestment, for an undisclosed amount, is subject to the approval of the competition authorities and customary closing conditions. The transaction will not have a material effect on Neste’s financial position, says the company.