Caltex Australia plans to buy more oil refineries

24 April 2009

Caltex Australia Ltd, the country's largest oil refiner, has indicated on Thursday that it would target oil refineries for acquisition, which might be put on block as a result of change in strategies by oil majors due to the current economic meltdown.

The company, owned 50 per cent by the global giant Chevron Corporation, operates two oil refineries in Australia, the Kurnell refinery near Sydney and the Lytton refinery near Brisbane, with a total crude oil throughput exceeding 35 million litres per day and accounting for about 30 per cent of the country's refining capacity.

Australia has five other active oil refineries, two each owned by BP and Royal Dutch Shell and one by ExxonMobil.

Caltex chairperson Elizabeth Bryan expects the global crisis will lead to rationalisation in the refining market. "We've been expecting that rationalisation to start for a long time and we're still expecting it," Bryan said after attending the shareholders meeting in Sydney.

"These economic circumstances that we're in may start to drive some shake-out. We will play whatever role in that we think is appropriate and in the long-term interests of our shareholders," she added.
 
The managing director of the company, Des King said they are looking at new opportunities that might come along.

"We go into a softer period for the global oil industry with a strong balance sheet, which means if there is a good opportunity, we could certainly have a look at it." he said.