Chevron makes Australian service station comeback

Chevron is returning to Australia’s fuel retailing market, through the acquisition of Puma Energy’s network of petrol stations and retail stores in a deal worth $425 million.

Puma’s network in Australia includes 360 petrol stations, 222 shops, 81 restaurant/cafes and 60 truck stops, and had been the global fuel giant’s second-largest retail market.

In 2017-18, Puma recorded 45.8 million fuel and convenience transactions in Australia, according to its annual report.

Puma Energy chief executive Emma Fitzgerald said the transaction was designed to optimise the company’s global portfolio and deleverage its balance sheet by the end of 2020.

“This follows the sale of our business operations in Indonesia and Paraguay, enabling us to pay down our debt and ensure we’re focused on those markets which drive growth as part of our customer-focused five-year strategy.” 

Chevron has been absent from fuel retailing in Australia since it sold its 50 per cent stake in Caltex Australia for $4.62 billion in 2015.

The acquisition was made by Chevron subsidiary Chevron Downstream Australia. 

Chevron Downstream & Chemicals executive vice president Mark Nelson said the deal would provide Chevron with a stable market for production from its refining joint ventures in Asia.

"It will build on Chevron’s strong history of partnership in Australia and our global experience in fuels and convenience marketing and supply,” Mr Nelson said.

The deal is expected to close by mid 2020, subject to regulatory approvals.