31 Aug 2005

TEXACO SELLS PETROL STATIONS TO PACE PETROLEUM

Texaco Ltd, a subsidiary of Chevron Corporation, has announced that it is to sell up to 60 of its UK service stations to Pace Petroleum, one of the UK’s leading independent forecourt operators, and fuel distributors. The first sites are expected to transfer to Pace over the next few weeks with the remainder transferring by the end of October. This announcement follows on from the sale of 118 Texaco sites to Somerfield in June.

Earlier this year, Texaco announced its intention to sell its company-owned service stations by the end of this year and instead focus on growing its network of Texaco-branded independent retailers as well as its Commercial and Industrial business. Texaco already has one of the largest networks of branded, independent petrol retailers in the UK.

John Lynn, Vice-President, Marketing Europe for Texaco said “Our aim is to improve our return on capital employed, and our agreement with Pace is consistent with this strategy. Most of our employees working at these sites will transfer over to Pace, our brand will remain on the forecourt and we will continue to supply customers of Texaco and Pace with excellent quality fuel. In addition, the Texaco fuel cards, WE.O.U. loyalty card and Texaco credit card will all continue to be accepted at these service stations”.

Brian Handley, General Manager, Pace Petroleum said “We are delighted to acquire a further 60 stations which complement our strategy of profitable growth. The retention of the Texaco brand, already a supplier to Pace, provides us with a strong retail offer in this sector of the market”.