As her previous employer, Texaco, prepared to shed its interest in the Equilon and Motiva joint ventures, Equilon Lubricants President Louise Nemanich announced plans to retire at the end of next month.
An internal memo provided by the company did not mention Texaco’s plans to divest its share of Equilon and Motiva as part of its effort to merge with Chevron. The memo said Nemanich is retiring to spend more time with her family and to teach at an unnamed university.
Chevron and Texaco officials are aiming for an October closure for their $34.4 billion merger, which was first announced last fall, but have said they expect the U.S. Federal Trade Commission to require Texaco to give up its interest in the twin downstream American joint ventures.
Equilon Enterprises LLC and Motiva Enterprises LLC were both formed in 1998. Equilon combines the Midwest and Western refining and marketing businesses of Texaco and Shell, along with their nationwide transportation and lubricants activities. Shell owns 56 percent of the company, Texaco 44 percent. Motiva includes Shell and Texaco’s Eastern and Gulf Coast refining and marketing operations. Shell owns 35 percent of the venture, while Texaco and Saudi Aramco each own 32.5 percent.
Texaco has been negotiating to sell its interests to its partners but a Texaco spokesman acknowledged that the parties have failed to agree on a price. Last month, Chevron presented a proposal to turn its shares over to a trust in order to gain regulatory approval for the merger. According to the plan, the trust would then have eight months to sell the interest.
Nemanich’s retirement ends a 21-year career in the oil business. She joined Texaco in 1984 when it acquired Getty Oil, then climbed the corporate ladder until becoming assistant to the president of global business in 1996. She joined Equilon upon its formation.