Oil giant BP, which made a $22.3-billion profit last year, is buying its US-based rival Chevron's Netherlands manufacturing company, Texaco Raffinaderij Pernis B V, for around $900 (Rs40,167 crore) million. The acquisition does not include the working capital and hydrocarbon inventory of the Dutch company.

BP will take control of Chevron's 31-per cent minority stake in the Netherlands Refining Company (Nerefco), in which BP already has a 69-per cent stake; Chevron's stake in a jointly owned wind farm located at the refinery and 22.8-per cent shareholdings in the nearby TEAM crude oil terminal and storage facility and a number of associated pipelines.
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This will give the British company 100-per cent ownership of Texaco Raffinaderij and Nerefco Refinery, located in Europoort, Rotterdam.

Nerefco, is one of the largest refining facilities in Europe with a crude distillation capacity of 400,000 barrels a day, with global export capabilities in addition to serving European markets. BP says the transaction is not expected to have any impact on the day-to-day operations at the refinery or on its employees.

"Nerefco is a large, flexible refinery that is ideally configured to serve the growing demands for clean transport fuels, particularly diesel, throughout Europe," said John Manzoni, chief executive of BP refining and marketing. "As sole owners we will be able to simplify the existing operations which were designed to meet the individual requirements of each party."

BP currently owns or has shareholdings in eight European refineries, giving it a total crude distillation capacity of 926,000 barrels a day. It recently announced an agreement to sell its Coryton refinery in the UK with a crude distillation capacity of 172,000 barrels a day, to Petroplus Holdings AG for $1.4 billion.

Once the sale of Coryton and the acquisition of Chevron's shareholding in Nerefco are completed, BP will have an interest inseven European refineries and a crude distillation capacity of 878,000 barrels a day.

Chevron said it is focusing on areas where it has strength in the market.