Chevron said it’s putting up for sale its 50% interest in Caltex Australia, likely to a “broad range of Australian and global equity market institutional investors,” the company announced March 27.

“This transaction reflects Chevron’s commitment to regularly review our portfolio and generate cash to support our long-term priorities,” said Chevron Downstream Executive Vice President Michael Wirth.

Despite the sale, estimated by the Sydney Morning Herald at $4.62 billion, “Asia-Pacific is a core strategic focus for Chevron’s downstream business and we remain focused on ensuring our operations, portfolios and investments are well-positioned to meet the region’s growing demand for energy,” added Chevron international products president Mark Nelson.

The current trademark licensing agreement between Chevron and Caltex “will remain in effect following the transaction,” according to the company.

“Chevron will continue to ensure a reliable, high-quality supply of product is available to Caltex to supply to its retail and reseller franchise network. Chevron is also committed to seeking long-term relationship opportunities with Caltex.”

In a separate media statement, Caltex added that it “remains committed to its vision of remaining the outright leader in transport fuels in Australia and Chevron’s sale will not change this. Through Ampol Singapore, Caltex retains its strong supply sourcing capability and Chevron will remain an important supplier.”

Jack Peckham can be reached at jpeckham@hartenergy.com.