A consortium that includes Swiss miner and commodities trader Glencore and Indonesia’s PT Chandra Asri Pacific is in advanced talks to buy Shell’s oil refinery and petrochemical units in Singapore, in a deal that could be worth about $1 billion, Bloomberg News reported on Friday.
The parties are working on the details of a transaction that could be announced as soon as the coming weeks, Bloomberg reported, citing people with knowledge of the matter.
The assets include a refinery capable of processing 237,000 barrels per day (bpd) of oil and a 1-million-metric-ton-per-year ethylene plant located on Bukom island, just south of Singapore, as well as a plant that produces mono-ethylene glycol on Jurong island in the Southeast Asian city-state’s west.
Under the terms of the potential deal, PT Chanda Asri would become the operator and majority owner of the assets, while Glencore would hold a non-operating minority stake, the report said.
Shell, Glencore and PT Chanda Asri did not immediately respond to Reuters requests for comment.
Shell announced a strategic review of the assets last June.
Reuters reported earlier this year that Glencore was working jointly with PT Chandra Asri Petrochemical to evaluate the assets.
Reuters
