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Neste sells base oils business to Chevron – Reuters

General view of Neste’s oil refinery, with a total refining capacity of about 13.5 million tonnes per year, in Porvoo, southern Finland, November 17, 2015.REUTERS/Jussi Rosendahl/File Photo

HELSINKI, Oct 4 (Reuters) – Finnish biofuel producer and oil refiner Neste (NESTE.HE) on Monday said it will sell its base oils business to U.S. group Chevron (CVX.N).

The agreement with Chevron will cover Neste’s Porvoo base oils production volumes, its premium brand NEXBASE, all formulation coverage associated with the brand as well as a global marketing and distribution platform, the Finnish company said without disclosing a price.

“The transaction will not have a material effect on Neste’s financial position,” the company said in a statement.

Base oils are used to make lubricants and similar products and are part of the output from oil refining operations.

As part of the deal, Neste will also exit a similar business in Bahrain.

Reporting by Essi Lehto
Editing by Toby Chopra and David Goodman

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