Japanese global petroleum and metals conglomerate Eneos Holdings has decided to buy American major Chevron’s 50% stake in Singapore Refining Company (SRC) and other assets in Southeast Asia and Australia for nearly USD 2.2 billion. The move also marks Eneos’ first refining foray beyond Japan.
According to Eneos, the deal, which includes Chevron’s assets in Vietnam, Australia, the Philippines and Malaysia, is expected to close in 2027. It’s a win-win deal for both energy players, as Chevron has been eyeing divestment of its refining and storage assets in Asia to streamline operations and reduce costs.
“This investment represents a significant step in strengthening the business platform that connects Japan with Southeast Asia and Oceania, while bringing together the competitive strengths developed across each market to advance our group’s growth to the next stage,” said Eneos Holdings CEO Miyata Tomohide.
Eneos operates nine refining complexes in Japan, including a joint venture with PetroChina. SRC, on the other hand, runs a 290,000-barrel-per-day refinery in Singapore, with the other half of the company being held by PetroChina through its subsidiary, Singapore Petroleum Co.
“The agreement reflects Chevron’s disciplined approach to managing its international portfolio,” said Andy Walz, president of Chevron’s downstream, midstream and chemicals.
The SRC stake sale is the second major divestment deal in Singapore after Shell sold its Bukom refining and petrochemical complex in 2024. Apart from the SRC stake sale, Chevron previously sold off its Hong Kong retail stations to Thai refiner Bangchak Corp for USD 270 million.
The SRC sale includes Chevron’s Penjuru terminal and lubricants facility in Singapore, which has a storage capacity of around 400,000 cubic metres, roughly equivalent to 2.5 million barrels of oil.
For Eneos, taking over a fuel terminal in one of the world’s largest oil storage and blending hubs will expand the Japanese conglomerate’s trading capabilities, especially in refined fuel, analysts said.
“It will be an important strategic move for Eneos to grow downstream given its domestic market in Japan is saturated and expected to decline. It is not just the refinery; things that come along will be the deal sweetener,” said Sushant Gupta, Wood Mackenzie’s Asia Pacific refining and oils research director, while interacting with Reuters.