Chevron yesterday outlined plans to whittle its downstream business, including eliminating 2,000 jobs this year and soliciting bids for some of its European operations.
The company has not disclosed specific information on how lubricant operations will be impacted.
The cuts represent about 12 percent of Chevrons 16,900 downstream employees globally. The company expects staff reductions to occur through 2011.
Chevron has announced its intention to solicit bids for some of its operations in Europe as part of the companys global downstream restructuring, Chevron spokesman Sean Comey told Lube Report. This includes our Pembroke [U.K.] refinery, as well as fuels marketing, aviation and lubricants operations in Europe. Our European Oronite and marine lubricants operations are not included.
Comey emphasized that the bid process is to determine interest in Chevrons operations in Europe. No decision has been made to sell any asset at this time, he stated.
He said the Pascagoula, Miss., base oil plant project now under construction continues to be in Chevrons plans. The company has said the new 25,000 barrels per day facility, with estimated completion in 2013, will focus on the North American and European premium base oil markets, with Latin America also in the mix.
Chevrons Richmond, Calif. refinery has a base oil plant with 20,000 barrels per day of API Group II capacity.
Downstream market conditions are likely to be difficult for the next several years, Chevrons Mike Wirth, executive vice president, stated yesterday. We intend to further concentrate our downstream portfolio in North America and Asia-Pacific. These are markets in which we have our greatest competitive strength. We are also rapidly and aggressively lowering costs, reducing capital spending, improving efficiency and simplifying our organization.