Chevron struck a deal with Eneos to sell it its 50% interest in Singapore Refining Company. The Japanese energy major will pay close to $2.2 billion for the stake, media reported. As part of the deal, Eneos will also acquire other Chevron assets across Southeast Asia and Australia.
The deal, for Eneos, fits with its expansion strategy and a move away from a focus on the domestic Japanese market. For Chevron, the sale is part of a push to streamline global assets and reduce costs.
Singapore Refining Company is a 50/50 joint venture between Chevron and the Chinese state-run oil and gas giant PetroChina. The refinery in Singapore can process 290,000 barrels per day (bpd) of crude oil, with the fuel traded through a regional and international network, and an established distribution in Singapore and within Jurong Island.
Earlier this year, Chevron said it would lay off 15-20% of its global workforce and reorganize its business structure. The company’s Oil, Products & Gas organization will be consolidated into two segments: Upstream and Downstream, Midstream & Chemicals. Mark Nelson will continue to lead this organization as vice chairman and executive vice president, Oil, Products & Gas.
As part of the larger cost-cutting drive that will see its global workforce reduced by a fifth by 2026, Chevron is also giving the slip to 800 of its employees in the Permian.
Eneos, meanwhile, is expanding. Earlier this year, the company returned to a joint venture with Petronas that operates a liquefied natural gas project in Malaysia. Under the new agreement between the two, the Japanese company will have a 10% stake in LNG Tiga and hold it for a period of ten years. Alternative sources of LNG have become all the rage since Qatar declared force majeure on its own exports following damage from Iranian missile strikes.
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