Chevron to honor all existing NEXBASE base oil contracts
Chevron Corporation, which announced the acquisition of Neste Oyj’s NEXBASE™ base oil brand, associated qualifications and approvals, and related sales and marketing business through its wholly owned subsidiary Chevron Global Energy Inc., said it plans to honor all existing NEXBASE contracts and volumes following the sale.
The acquisition was announced on October 4, 2021. The parties have agreed that the transaction price shall remain confidential.
The transaction is expected to close within four to six months, subject to customary antitrust regulatory approvals and other closing conditions.
Upon completion of the transaction, NEXBASE base oils will continue to be produced at the same facilities as present, with no changes to current NEXBASE™ supply volumes and Chevron will manage supplies accordingly from those facilities.
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 a presence in Bahrain.
NEXBASE transaction includes long term off-take agreements
Chevron’s NEXBASE transaction includes long term off-take agreements between Chevron and each of Neste and Bapco.
“We expect the addition of the NEXBASETM brand and associated business to provide value to our customers through improved logistics, reduced complexity and optimized solutions,” said Alicia Logan, general manager of Chevron Base Oils. “This acquisition is poised to satisfy our customers’ growing needs to meet increasingly stringent lubricant standards driven by evolving vehicle specifications, and maintains the technology leading positions of our past base oil investments. Coupled with our investment in Novvi to bring renewable base oils to the market, this acquisition positions Chevron to be the supplier of choice to meet customers’ needs both today and into the future.”