Chevron to produce Nexbase at Neste, Bapco refineries

Market: Oil products
12/10/21

Chevron's plan to purchase Finish refiner Neste's Nexbase base oils business will include long-term offtake agreements with Neste and state-owned Bapco.

Chevron said Nexbase Group III and Group III+ base oils will continue to be produced at the same facilities currently producing Nexbase base oils after the transaction closes.

This includes Nexbase Group III production at Neste's 250,000 t/yr Group III plant, at its 197,000 b/d Porvoo refinery in Finland, 180,000 t/yr or 45pc of Bapco's 400,000 t/yr Group III plant at Bahrain's 262,000 b/d Sitra refinery, and an undisclosed volume produced at Chevron's 250,000 b/d Richmond, California refinery. It will also include the production of a Group III+ 4cst grade, a blend between Nexbase Group III and renewable molecules from US-based Novvi.

There will be no changes to supply volumes under the new offtake agreements. Chevron said it plans to honor all existing Nexbase contracts and volumes after the transaction closes.

The transaction is expected to close within the next four to six months after securing antitrust regulatory approvals.

Chevron announced its plans to purchase the Nexbase base oils business last week. The transaction will add premium-grade Group III and Group III+ base oils to Chevron's existing portfolio of Group II base oils produced in the US at its facilities in Richmond and Pascagoula, Mississippi, and through a joint venture with GS Caltex in Yeosu, South Korea.

By Eva Molina

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