Chevron, Phillips form JV

Expected to be finalised by the middle of the year, the chemical concern should see pre-tax synergies of about 150 million a year, including savings through job cuts, the companies said in a joint statement. San Francisco-based Chevron, the No 2 US oil company and Phillips, the No 6 US oil company, said they planned to eliminate about 600 jobs, or 10 per cent of the venture8217;s 6,000 positions. For Phillips, based in Bartlesville, Okla. The deal comes as it tries to shift its focus toward the upstream, or oil exploration and production,side of the petroleum business.

quot;We are positive on the transaction,quot; said analyst GeneNowak of ABN Amro. quot;It comes as no great surprise as Phillips has had this as a corner stone of its repositioning strategy.quot; Already, Phillips has agreed to combine its natural gas gathering and processing business with Duke Energy Corp and Phillips chief executive Jim Mulva has made clear he is studying a JV for its refining, marketing, and transportation business.