Chevron seeks buyers for 50% stake in Singapore refiner SRC, sources say
A Singapore Refining Company plant at Jurong Island. A source put the value of Chevron's SRC stake at hundreds of millions of dollars. PHOTO: ST FILE
SINGAPORE - US oil major Chevron has sought non-binding bids for the sale of its 50 per cent stake in Singapore Refining Company (SRC), including from joint venture partner PetroChina, eight sources familiar with the matter told Reuters.
Chevron is also gauging interest for the sale of other assets in Asia, including terminal and fuel storage facilities in Australia and the Philippines, one of the sources and a separate source said.
The potential sales come as Chevron restructures globally to streamline operations and reduce costs, a process that could see it lay off up to 20 per cent of its workforce by the end of next year.
Chevron has appointed Morgan Stanley to explore the sale of the SRC refinery in Singapore and other Asian assets, one of the sources said. Morgan Stanley declined to comment.
PetroChina, which owns the other 50 per cent of SRC through its Singapore Petroleum Co Ltd unit, has first right of refusal to purchase Chevron's share, three of the sources said.
'Chevron does not comment on commercial matters as a matter of long-standing policy,' a company spokesperson said.
PetroChina did not respond to a request for comment.
Other firms invited to review the refinery stake include global trading house Glencore, three of the sources said.
Glencore does not comment on market rumour or speculation, a company spokesperson said.
Buyers were asked to submit non-binding offers in July, the three sources said.
One of the sources put the value of Chevron's stake in the Singapore refining business at hundreds of millions of dollars. Two industry experts not involved in the process gave estimated valuations for 50 per cent of the plant ranging from US$300 million (S$385 million) to US$500 million.
The SRC refinery has a crude processing capacity of around 290,000 barrels per day, making it the smallest refinery in Singapore. It includes seven shipping berths, all of which can handle very-large crude carriers (VLCCs), according to SRC's website.
In May, Chevron sold its stake in Chevron Phillips Singapore Chemicals to Aster Chemicals and Energy, a joint venture between Chandra Asri and Glencore.
A deal for the refinery would mark the second recent exit by a global major from the Singapore refining sector, which is subject to a carbon tax that has raised operating costs.
In April, Shell completed the sale of its facility on Singapore's Bukom and Jurong islands to the Chandra Asri-Glencore joint venture, exiting an operation dating to 1961. REUTERS
Join ST's WhatsApp Channel and get the latest news and must-reads.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
International Business Times
4 hours ago
- International Business Times
Wall Street Shows Mixed Signals as S&P 500 Down 0.21%, Dow Gains 38 Points as Middle East Tensions Escalate
U.S. stock markets finished Friday with mixed results as traders continued to grapple with new geopolitical uncertainty in the Middle East and further cycles in oil and currency markets. The Dow Jones Industrial Average added 38.47 points, or 0.1%, to end at 42,210.13. The S&P 500, on the other hand, slipped 0.21%, while the Nasdaq Composite sank more deeply by 0.49%. Investor sentiment took on a cautious tone as President Donald Trump postponed taking military action in the wake of recent flare-ups in the Israel-Iran conflict. Markets began the day on a positive note, but worries about what could unfold over the weekend contributed to choppy trades and late-session declines. Energy prices also signaled the market's unease. Brent crude dropped 2.3 percent to $77.01 a barrel, but it was still up 3.6 percent for the week. U.S. crude futures settled at $74.93, down 0.28%, but still up 2.7% for the week, despite a holiday-thinned session on Thursday. "People are holding back from major moves ahead of the weekend. There's still a lot of risk tied to how the situation unfolds," said Rick Meckler of Cherry Lane Investments. Diplomatic Moves and Geopolitical Risks: The United States forged ahead with targeted sanctions on enterprises tied to Iran's defense industry, a diplomatic strategy from the White House. But analysts warn that with Israel and Iran continuing to trade hostilities, any miscalculation would see the crisis ratchet higher and put vital oil infrastructure at risk. "There's always a chance of an unintended spark in these kinds of conflicts," said John Evans, an analyst at PVM Oil Associates. European officials called on Tehran to resume negotiations over its nuclear ambitions after a high-level meeting in Geneva ended without progress. European stock markets closed slightly higher, buoyed by optimism from earlier Asian trading sessions. The MSCI World Index was down slightly by 0.01%, while gains in Hong Kong and Seoul helped balance out losses in the other Asian markets. Fed Talk Spotlights Policy The Gap: Federal Reserve officials spoke publicly for the first time since comments by the Fed's chair, Jerome H. Powell, on Wednesday, indicating that the central bank is likely to cut interest rates this year. But he cautioned that inflation, particularly from Trump's trade tariffs, is a risk. A divide among policymakers is also now visible. Governor Christopher Waller insisted to open the door to a rate cut as soon as the next meeting, and Richmond Fed President Tom Barkin countered that there's no rush to move. Powell, for his part, warned against putting too much stock in forecasts in such a dynamic environment. Waller's dovish take sent bond markets into motion. The yield on the benchmark 10-year Treasuries fell 2 basis points to 4.375%. Strong safe-haven demand, which has been soaring in recent weeks because of global tensions, was another factor contributing to the fall. Currency and Commodity Price Movements The dollar was stronger, reaching a three-week high against the yen. A gauge of the dollar against major currencies inched 0.03% higher on the day and 0.6% for the week. The euro was 0.3% firmer at $1.1528. Gold prices were down 0.13% at $3,365.91, set for a weekly decline despite some strength earlier in the week as a safe haven asset.
Straits Times
8 hours ago
- Straits Times
TBR (To Be Read): Should S'pore authors be paid each time their books are borrowed from the library?
Public Lending Right allows authors to receive some form of payment with library loans of their books, ensuring their labour is better rewarded over time with each. PHOTO: ST FILE SINGAPORE – Being an author is tough anywhere, but especially so in S ingapore, which has recently ranked among the most expensive cities. Local publishers cannot afford the six-figure advances doled out in larger markets. Floundering book sales hardly guarantee sufficient payment, unless one's name is Sonny Liew, author of all-time bestseller The Art Of Charlie Chan Hock Chye (2015). Join ST's Telegram channel and get the latest breaking news delivered to you.
AsiaOne
9 hours ago
- AsiaOne
Japan scraps US meeting after Washington demands more defense spending, World News
WASHINGTON - Japan has cancelled a regular high-level meeting with its key ally the United States after the Trump administration demanded it spend more on defence, the Financial Times reported on Friday (June 20). Secretary of State Marco Rubio and Defence Secretary Pete Hegseth had been expected to meet Foreign Minister Takeshi Iwaya and Defence Minister Gen Nakatani in Washington on July 1 for the annual 2+2 security talks. But Tokyo scrapped the meeting after the US asked Japan to boost defence spending to 3.5 per cent of gross domestic product, higher than an earlier request of 3 per cent, the newspaper said, citing unnamed sources familiar with the matter. Japan's Nikkei newspaper reported on Saturday that President Donald Trump's government was demanding that its Asian allies, including Japan, spend 5 per cent of GDP on defence. A US official who asked not to be identified told Reuters that Japan had "postponed" the talks in a decision made several weeks ago. The official did not cite a reason. A non-government source familiar with the issue said he had also heard Japan had pulled out of the meeting but not the reason for it doing so. State Department spokesperson Tammy Bruce said she had no comment on the FT report when asked about it at regular briefing. The Pentagon also had no immediate comment. Japan's embassy in Washington did not respond to a request for comment. The nation's foreign and defence ministries and the Prime Minister's Office did not answer phone calls seeking comment outside business hours on Saturday. [[nid:715497]] The FT said the higher spending demand was made in recent weeks by Elbridge Colby, the third-most senior Pentagon official, who has also recently upset another key US ally in the Indo-Pacific by launching a review of a project to provide Australia with nuclear-powered submarines. In March, Prime Minister Shigeru Ishiba said that other nations do not decide Japan's defence budget after Colby, in his nomination hearing to be under secretary of defence for policy, called for Tokyo to spend more to counter China. Japan and other US allies have been engaged in difficult trade talks with the United States over President Donald Trump's worldwide tariff offensive. The FT said the decision to cancel the July 1 meeting was also related to Japan's July 20 upper house elections, expected to be a major test for Ishiba's minority coalition government. Japan's move on the 2+2 comes ahead of a meeting of the US-led Nato alliance in Europe next week, at which Trump is expected to press his demand that European allies boost their defence spending to 5 per cent of GDP.
