(New throughout, adds details about deal and background about companies)
By Jessica Resnick-Ault
April 18 (Reuters) - Chevron Corp (NYSE:CVX) CVX.N , the second-largest U.S.-based oil company, sold its Canadian gasoline stations and refinery in British Columbia to Parkland Fuel Corp PKI.TO , a marketer of petroleum products, for C$1.46 billion ($1.09 billion).
Parkland Fuel said it would acquire Chevron's refining and marketing operations in Canada and pay an additional $186 million toward working capital for the acquired business. acquisition adds scale to Parkland and gives the company "significant supply infrastructure and logistics capability to support Parkland's existing operations," Parkland CEO Bob Espey said in the statement.
The assets include 129 gasoline stations, three terminals and the Burnaby oil refinery, located east of Vancouver. The refinery can process 52,000 barrels of oil a day. It does not process bitumen, the heavy, tar-like substance extracted from Canada's oil sands.
Reuters previously reported that Chevron had retained Goldman Sachs (NYSE:GS) to sell the plant. is also exploring the sale of its 20 percent stake in Canada's Athabasca Oil Sands project, which could fetch about $2.5 billion, Reuters reported last week year, Chevron posted its first annual loss since 1987. The company is working on a two-year plan to sell $5 billion to $10 billion in assets in 2016 and 2017.
The company, aiming to achieve neutral cash flow this year, is also boosting spending on its low-cost Permian shale operations.