Eneos to buy Chevron's Singapore refinery stake, Asian assets for $2.2 billion

Thu, 14th May 2026 07:05

TOKYO/SINGAPORE, May 14 (Reuters) - ⁠Eneos Holdings said on Thursday it will buy U.S. major Chevron's 50% stake in Singapore Refining Company (SRC) and other assets in Southeast Asia and Australia for nearly $2.2 billion in ‌its first refining foray beyond Japan.

The deal - which includes Chevron's assets in Vietnam, Australia, Philippines and Malaysia - is expected ⁠to close in 2027, Eneos said. Chevron has been looking ⁠to divest 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.

The announcement confirms an earlier Reuters report that the sale would likely be concluded by May.

CHEVRON DIVESTMENT

SRC operates a 290,000 barrels-per-day refinery in Singapore and the other half of the company is 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 refinery deal ‌in the Asian oil hub after Shell sold its Bukom refining and petrochemical complex in 2024.

Earlier, Chevron had sold off its Hong Kong retail stations to Thai refiner Bangchak Corp for $270 million.

The 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.

Taking over a fuel terminal in one of the world's largest oil storage and blending hubs will expand the company's trading capabilities, especially on 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," said Sushant Gupta, Wood Mackenzie's Asia Pacific refining and oils research director, a reference to Japan's long-term decline in demand owing to a shrinking population.

"It is not just the refinery but ‌things that come along will be the deal sweetener."

Morgan Stanley was appointed by Chevron to handle the sale of the refinery stake and other assets in Asia. (Reporting by Katya Golubkova and Yuka Obayashi in Tokyo, Trixie Yap in Singapore; Editing by Muralikumar Anantharaman and Neil Fullick)