The deal, which will include Glencore retaining Chevron’s local management team and workforce, will be funded using existing cash resources and is expected to close in mid-2018. Glencore has agreed with Off The Shelf to acquire 75% of Chevron South Africa, and the entire issued share capital of Chevron Botswana for $973m. The payment will be made in cash from Glencore’s own resources, with the energy trader investing at least $500m over next 12 months. In a statement, the company said: “Through our joint venture partners, we have been able to achieve significant cost savings on drilling costs by using off-shore platforms that are more efficient than onshore platforms.
Glencore has agreed with Off The Shelf to acquire 75% of Chevron South Africa, and the entire issued share capital of Chevron Botswana for $973m. The payment will be made in cash from Glencore’s own resources, with the energy trader investing at least $500m over next 12 months. In a statement, the company said: “Through our joint venture partners, we have been able to achieve significant cost savings on drilling costs by using off-shore platforms that are more efficient than onshore platforms.