As Chevron accelerates its cost-cutting efforts, several assets of the American company in the Asia-Pacific region are going “under the hammer”.
In this context, Vitol and Glencore are “eyeing” Chevron’s stake in Singapore’s second-largest refinery. This is a refinery on Jurong Island, which has a processing capacity of approximately 290,000 barrels of crude oil per day. Chevron owns 50% of the refinery and the remaining 50% belongs to Singapore Petroleum, a subsidiary of China’s state-owned oil company, PetroChina. The total value of the refinery is close to $1 billion.
According to a Reuters report, Vitol and Glencore are expected to submit formal bids for the acquisition of Chevron’s stake. The said refinery is high on the agenda of the two giants, who wish to strengthen their presence in Singapore. It is recalled that Singapore is Asia’s largest oil trading hub and the largest ship refueling port globally.
Finally, it is noted that Chevron is expected to receive binding acquisition offers in the coming October. However, the stance of PetroChina remains a question mark, as it retains the right of first refusal for the sale of the American company’s stake in the refinery.
