Neste has signed an agreement to sell its existing base oil business to Chevron. The agreement includes a combination of shares and asset deals that form Neste’s entire global base oils business. The parties also agreed to a long-term offtake of Neste’s base oil supply from Porvoo, Finland. At the same time, Neste signed an agreement to exit its base oil joint venture with Bahrain Petroleum Company and Nogaholding, both Bahrain.
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 includes production volumes of Neste’s base oils in Porvoo, the premium NEXBASE™ brand, all formulations associated with the brand, and a global marketing and distribution platform.
The parties have agreed not to disclose the price of the transaction. The transaction will not have a material impact on Neste’s financial position. The closing of the divestment is subject to approval by competition authorities and customary closing conditions and is expected to take place by the end of the first quarter of 2022. Neste refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstocks for plastics and other materials, and is a leading producer of renewable diesel and sustainable aviation fuel.