DLA Piper advises Sinopec on acquisition

DLA Piper has advised China Petroleum and Chemical Corporation (Sinopec) on its acquisition from Chevron Global Energy Inc. of 75% of the shares in Chevron South Africa (Pty) Limited and 100% of the shares in Chevron Botswana (Pty) Limited. The deal heralds Chevron's exit from, and Sinopec's entry into, the South African and Botswanan downstream markets.

Chevron South Africa and Chevron Botswana collectively form one of the largest integrated downstream oil businesses in sub-Saharan Africa. The business is focused on the refining and marketing of road transportation fuels and other refined products primarily through a network of over 800 sites serving motorists across South Africa and Botswana.

Chevron South Africa's refinery in Cape Town has a crude processing capacity of over 100 000 bpd and is the only refinery in the Western Cape. It supports the marketing operations of Chevron South Africa and Chevron Botswana as well as supplying a significant portion of refined product demand in the wider region.

Carolyn Dong, Head of Energy (China), and Charles Morrison, Head of the London Oil and Gas team, co-led the deal for DLA Piper. Following public announcement of the deal, Carolyn Dong noted that, "Africa is a very important market for Chinese investment and this deal forms part of that wider economic and trading relationship, especially as Chinese companies increase their investment in line with China's 'One Belt One Road' trade initiative."

Charles Morrison added that, "This is a very significant development in the African oil and gas market. The team at DLA Piper is very pleased to have been involved in what must be seen as an important strategic acquisition for Sinopec and we wish Sinopec every success. Our work on this deal demonstrates both the global strength of DLA Piper and the standing of our specialist oil and gas lawyers, supporting Sinopec as we have through our London Oil and Gas team and our energy specialists in China."