Chevron and Astron Energy extend Caltex brand agreement to 2026
Chevron Brands International, LLC (Chevron) and Astron Energy, a Glencore group company, have recently announced the extension of their Caltex Usage Rights and Debrand Agreements (URDA) for South Africa and Botswana, extending their collaboration until December 2026. This extension signifies a continued partnership between the two companies, reinforcing their commitment to the region’s energy sector.
Astron Energy is South Africa’s second largest petroleum network with more than 850 Caltex-branded service stations in South Africa and Botswana.
Under the extended agreement, Astron Energy will retain its status as Chevron’s exclusive licensee for Caltex-branded retail service stations in South Africa and Botswana until September 30, 2024. Post this date, the license will transition to a non-exclusive format. This change will enable Chevron to explore partnerships with other entities, aiming to expand the Caltex brand’s presence in these markets.
From October 1, 2024, until the end of 2026, Astron Energy will proceed with the rebranding of Caltex retail service stations to the Astron Energy brand. This rebranding initiative aligns with Astron Energy’s vision as an indigenous South African company and reflects its commitment to the region’s energy landscape. The Astron Energy brand, launched in July 2020, represents the company’s dedication to innovation and local market engagement.
Chevron, with a history of more than a century in South Africa and Botswana, reaffirms its commitment to these markets. “The Caltex star symbolises quality, value, and service, echoing our dedication to our partners and customers,” said Danielle Lincoln, vice president for International Products at Chevron. Chevron’s pledge to supply quality fuels with Techron in these countries remains steadfast, ensuring continued excellence in product and service.
Thabiet Booley, CEO of Astron Energy, expressed confidence in the agreement, highlighting its significance for the company’s future. “Our commitment to rebranding our retail network, restarting our refinery successfully, and the substantial investments in these flagship projects underscore the bright future we envision for Astron Energy,” he said.
This agreement between Chevron and Astron Energy is more than a business arrangement; it’s a strategic move that underscores both companies’ commitment to growth and sustainability in the energy sector. The extension of the URDA is a clear indication of their intent to adapt and thrive in a dynamic market environment, ensuring that both companies remain at the forefront of the energy industry in South Africa and Botswana.
The partnership also reflects a broader trend in the global energy sector, where collaboration and strategic alliances are increasingly becoming key to navigating market complexities and embracing growth opportunities. As Chevron and Astron Energy move forward with this extended agreement, they set a precedent for innovative and adaptive strategies in the energy sector.
In 2017, Chevron, which owns the Caltex brand following its acquisition of its 50-50 partner Texaco, sold its 75% stake in Chevron South Africa Proprietary Limited to Glencore. Chevron South Africa operated a 110,000-barrel-per-day (bpd) refinery in Cape Town and a lubricant blending plant in the eastern port city of Durban. Chevron South Africa markets its products through more than 845 Caltex-branded service stations. After Chevron Corp. announced its intention to sell its 75% stake in its South African unit, Chevron South Africa, Chevron awarded the stake saleto China Petroleum & Chemical Corp. (Sinopec) for USD900 million.
Companies operating in South Africa are required to have a black economic empowerment (BEE) partner, with a shareholding of around 25%. OTS, which owned the remaining 25% of these assets, exercised its pre-emptive right to acquire these assets from Chevron Corp., railroading the Sinopec acquisition and re-opening the sales process. OTS started to look for a partner to held fund the buyout. Glencore said it will support OTS as their technical and financial partner during the acquisition process.