Chevron disclosed that it has completed the acquisition of a factory in the Houston suburb of Pasadena, Texas. The firm added that this deal was finalized with Petrobras, Brazil’s national oil company, for about $350 Million.
Reportedly, this sale was decided in January 2019; however, Chevron put the transfer of factory’s ownership on hold till April 2, 2019. The Pasadena factory is said to be the 2nd on the U.S. Gulf Coast for Chevron that is situated in San Ramon, California. Mark Nelson, Executive Vice President, Downstream And Chemicals, Chevron, proclaimed that the latest purchase builds on the power of the firm’s existing Gulf Coast business. He added that the deal would enable the firm to supply more of its retail market in the area with Chevron-produced products. This acquisition will as well position the firm for its connectivity to its strong upstream assets in the Permian Basin.
On a similar note, a novel finding highlighted that the oil firms will be attractive investments unless they quickly accept low carbon business patterns, which back the Paris Agreement’s climate targets. These findings come from a huge survey of about 39 fund managers that are responsible for about $10.2 Trillion of assets.
The alarming findings are said to be the outcome of a survey performed by the Climate Change Coalition charity and the U.K. Sustainable Investment and Finance Association (UKSIF). These agencies lay bare the scale of growing investor distresses over the long period viability of high carbon firms. The result suggests that growing investor pressure on oil companies to move away from fossil fuels is set to be strengthened in the upcoming period. About 86% of survey respondents called on oil companies to line up their businesses with the Paris Agreement’s latest objectives.