At least three Chinese companies are considering acquiring Shell‘s refining or petrochemical facilities in Singapore, reported Reuters, citing several sources familiar with the matter.

The Chinese companies, China National Offshore Oil Company (CNOOC), Eversun Holdings and Wanhua Chemical, are looking to place non-binding bids for the Shell assets in the coming weeks.

In August 2023, Reuters reported that Shell appointed Goldman Sachs to explore a potential sale of its refining and petrochemical plants in Singapore.

The sale forms part of a broader global strategic review by Shell in an effort to become a lower-carbon operator.

At that time, Bloomberg News reported Shell as saying in an email: “Our strategic review is ongoing and we are exploring several options including divestment.

“This review is in response to the ongoing high grading journey of Shell Group’s Chemicals and Products portfolio over the years, the current challenging market conditions and enhanced capital discipline.”

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By GlobalData

Shell’s assets up for sale include a 237,000 barrels per day (bpd) refinery and a one million tonne per year (tpa) ethylene cracker, according to sources.

A person involved in assessing the assets was quoted by Reuters as saying: “It appears that Shell has invited a broad group of companies and asked interested parties to send in a non-binding bid and proposal as to how they plan to run and manage the facilities.”

Two of the sources said a preliminary deadline of 5 November 2023 has been set by Shell for bids from potential companies. The deadline, however, could be extended.

Shell’s only wholly owned refining and petrochemicals centre in Asia, the Bukom refinery is capable of processing 237,000bpd of crude.

The refinery comprises a one million tonnes per annum ethylene cracker and a 155,000tpa butadiene extraction unit.