Caltex Australia to sell bitumen business to Puma Energy
Caltex Australia has entered into a conditional agreement to sell its Sydney-based import bitumen business to Puma Energy, a subsidiary of Trafigura Beheer BV.
Financial details of the acquisition were not revealed.
Bitumen is a by-product of the refining process and in 2010, after the announcement to close its base oil refinery at Kurnell, Caltex Australia implemented a new bitumen import supply chain to enable supply to be maintained to the New South Wales road construction industry.
This business included an agreement with Terminals Pty Ltd to build and operate the purpose-built Port Botany Bitumen Terminal for Caltex, and a partnership with SAMI Bitumen Technologies in an oxidation and in-line blending facility.
Caltex Australia Managing Director Julian Segal said that with the shutdown of its Kurnell base oil refinery, which produced bitumen as a by-product, “bitumen is no longer deemed to be a core business. The decision to divest is consistent with our strategy and it makes operational and financial sense.”
The sale, which remains subject to a range of conditions being met, including Foreign Investment Review Board approval, is targeted for completion by the end of 2013.