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Allens advises Caltex on restructuring
Allens has advised Caltex on aspects of its petroleum products supply-chain restructuring in the Asia region.
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Firm: Allens (Caltex)
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Deal: Restructuring of its petroleum products supply chain in the Asia region
Area: Corporate
Value: Undisclosed
Key players: Caltex's in-house legal team led the negotiation of the product supply agreement, with support from a Perth Allens team led by oil and pas partner Anthony Patten.
Deal significance: The major components of the restructuring include the proposed closure in the second half of 2014 of Caltex's Kurnell refinery, to make way for its conversion to a major import terminal; and the entry by Caltex into an agreement with Chevron for the procurement and supply of transport fuels with associated shipping services to provide a reliable and efficient source of imported product.
Under a long-term product supply agreement, Chevron (which holds a 50 per cent shareholding in Caltex) will procure and supply Caltex with imported petrol, diesel and jet fuel at market-based prices. “This agreement is one of clear strategic significance for Caltex,” said Patten. “We were pleased to assist Caltex's in-house team in formulating an arrangement with Chevron that will underpin the next phase of Caltex's operations in the Asia-Pacific region.”
