Japan’s leading refiner, Eneos Holdings, has emerged as the frontrunner in the race to acquire Chevron’s 50% interest in the Singapore Refining Company (SRC). According to reports from Bloomberg News, the deal is nearing completion, though final signatures could still face delays.
Thank you for reading this post, don't forget to subscribe!The Competition and Valuation
While Eneos leads the pack, the bidding process has been highly competitive. Global commodity trading giants Vitol and Glencore were also expected to submit formal bids for the stake.
- Estimated Value: The entire refinery is valued at approximately $1 billion, placing the 50% stake at roughly $500 million.
- Ownership Structure: The remaining 50% of the facility is held by PetroChina through its subsidiary, Singapore Petroleum.
Asset Overview: Jurong Island
The refinery, located on Singapore’s Jurong Island, is a cornerstone of the region’s energy infrastructure:
- Capacity: Processes approximately 290,000 barrels of crude oil per day.
- Strategic Importance: It is one of only three major refineries in Singapore, which serves as the world’s largest bunkering port and Asia’s primary oil trading hub.
Official Responses
Despite the reports, both companies are currently playing their cards close to the vest:
- Chevron declined to comment on the speculation via an emailed statement.
- Eneos issued a brief response stating that “no decisions have been made” regarding the acquisition.
Why This Matters
This potential sale marks another major shift in Singapore’s refining landscape. As global “Supermajors” like Chevron and Shell reassess their long-term carbon footprints and operational costs in the city-state, regional players like Eneos and trading houses are stepping in to secure vital processing capacity in the heart of Asian trade.
