Shell Plc has agreed to sell its Singapore refining and chemicals assets to a joint venture between commodity trader Glencore Plc and Indonesian company PT Chandra Asri Pacific.
As part of the transaction, Shell will transfer all of its interest in Shell Energy and Chemicals Park Singapore, which comprises refining and chemicals assets on Bukom and Jurong islands, to the JV, it said in a statement on Wednesday, which confirmed a Bloomberg News report from last week. Financial details of the deal were not disclosed.
Shell said it remains committed to Singapore as a regional hub for its marketing and trading business.
The deal with Glencore and Chandra Asri could be worth about $1 billion, people familiar with the matter have said. Shell’s Singapore assets include a refinery capable of processing 237,000 barrels of oil a day, a facility on Jurong Island that produces monoethylene glycol and an ethylene plant on Pulau Bukom.
Shell started a review of its energy and chemicals assets on Bukom and Jurong islands last year. The company’s Bukom facility is “by far the weakest integrated refinery-petrochemical site” in its portfolio, Wood Mackenzie analysts said in a report in September. – Bloomberg
