BP Plc said it has agreed to acquire Chevron Corp.’s Netherlands manufacturing business unit, Texaco Nederland B.V., and other assets for about $900 million plus working capital and hydrocarbon inventory.

 
These businesses comprise interests in several joint-venture companies operating in the Rotterdam area, including a 31% interest in the Netherlands Refining Company’s 400,000 barrel-per-day Nerefco Refinery. BP currently owns 69% interest in the Nerefco Refinery and the adjoining wind farm, but holds no interests in the other operations.
 
The assets also include a 22.8% interest in a crude oil storage facility, various associated proprietary pipelines and a 31% stake in the 22.5-megawatt wind farm located onsite at the refinery.
 
Subject to regulatory approval, the deal is expected to be completed during the first quarter of 2007.

Chevron said that the deal supports its strategic objective to improve shareholder returns by focusing its resources and capital investments on maintaining leading positions in areas where it has market and supply strength.

The San Ramon, California-based Chevron is one of the world’s leading energy companies conducting business in approximately 180 countries around the world.
 
For the fourth quarter, worldwide oil-equivalent production was 2.66 million barrels per day in the fourth quarter 2006, about the same as the corresponding 2005 period. Production for the full year 2006 averaged 2.67 million barrels per day, up from 2.52 million in 2005.

BP is a London-based company engaged in the exploration and production of crude oil and natural gas. For the fourth quarter, total liquids production was 2,416 million barrel per day, or mb/d, in the period, down from 2,564 mb/d in the previous year. Crude Oil production in the quarter dropped to 2,249 mb/d from 2,400 mb/d a year ago.