Caltex Australia To Buy Exxon's Share Of Gladstone Fuel Terminal

Caltex Australia Ltd. (CTX.AU) is planning to buy out Exxon Mobil Corp.'s (XOM) interest in a fuel terminal at the port of Gladstone in Queensland state, a Caltex spokesman said Thursday.

"The key drivers behind this arrangement were to realize cost and operational efficiencies for both parties," the spokesman told Dow Jones Newswires. Exxon Mobil wasn't immediately available for comment.

After the proposed acquisition, Caltex will continue to host Exxon Mobil's fuel terminal requirements in Gladstone, the Caltex spokesman said.

While not a large transaction, the deal would mark another stage in Exxon Mobil's exit from Australian gasoline markets following the sale of its filling stations to 7-Eleven Australia in May.

The stations were sold to 7-Eleven after Australia's competition regulator blocked a A$300 million sale to Caltex, which is 50%-owned by Chevron Corp. (CVX).

Market-watchers suspect that Exxon Mobil will eventually sell its Altona oil refinery in Victoria state but the company has so far indicated that it wants to keep its Australian wholesale operations.

"We're not currently looking at selling the Altona refinery, but we always assess business opportunities," an Exxon Mobil spokeswoman said in May.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

Caltex Australia (ASX:CTX)
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