A group including Swiss trading company Glencore and Indonesia’s PT Chandra Asri Pacific are in advanced negotiations to acquire Shell’s assets in Singapore, reported Bloomberg News citing people with knowledge of the matter.

This potential deal could be valued at around $1bn.

The entities are working out the details of the deal and an official announcement could be made in the coming weeks.

Shell’s assets in Singapore include a refinery with a daily capacity of 237,000 barrels per day (bpd), and a one-million-tonne-per-year ethylene plant on Bukom Island.

The assets also includes a mono-ethylene glycol production facility on Jurong Island in the Southeast Asian city-state’s west.

According to sources, under the proposed terms, PT Chandra Asri Pacific would take on the role of operator and as majority owner of the assets.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Glencore would maintain a non-operating minority stake in the assets.

Despite the advanced nature of the discussions, the outcome remains uncertain, with other potential bidders still showing interest in Shell’s assets, according to the sources.

Shell initiated a strategic review of energy and chemicals assets on Bukom and Jurong islands in 2023.

These facilities have been facing profitability challenges, and are up against tough competition from newer refineries, especially in China.  

Earlier this year, Reuters reported that Glencore was looking to acquire Shell‘s oil refinery and petrochemical units in Singapore.

Morgan Stanley is reportedly the investment bank assisting Glencore with the potential deal.

With the purchase of Bukom and Jurong assets, Glencore intends to build a significant physical presence in Asia’s primary oil hub.