Shell's oil refinery and chemical assets in Singapore will be purchased by a joint venture involving Glencore.
According to The South China Morning Post, the sale, pending regulatory approval, is anticipated to conclude by the close of 2024 and includes Shell giving its stake in the Energy and Chemicals Park to CAPGC.
Shell and CAPGC have finalized the sale of assets and inked agreements regarding crude supply and product off-take, reinforcing their partnership.
CAPGC, primarily controlled by Chandra Asri Group, with Glencore holding a minority interest, represents a strategic convergence of industry giants striving for common goals in an ever-evolving energy environment.
Shell's Singapore Oil Refinery Sale
Shell's sale of its assets in Singapore includes the physical facilities where oil refining and chemical production occur and the agreements related to these operations. These facilities are located on Pulau Bukom and Jurong Island.
While financial specifics were not disclosed, industry insiders suggest the deal could be valued at around $1 billion, though some analysts who spoke to Bloomberg estimate a lower figure.
Huibert Vigeveno, who oversees Shell's downstream, renewable, and energy solutions, states that this sale is part of their commitment to reducing emissions and improving the quality of their chemical and product offerings.
Vigeveno acknowledges Singapore's efforts to reduce carbon emissions and emphasizes Shell's long-term dedication to the region as a hub for marketing and trading activities.
Shell will also ensure a smooth transition for employees, assuring that those currently working at Shell Energy and Chemicals Park Singapore will maintain their roles under CAPGC ownership.
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