Chevron to close deal for Singapore refinery stake sale to Eneos in May: sources

[SINGAPORE] Chevron is likely to close a deal for the sale of its 50 per cent stake in Singapore Refining Company (SRC) and other regional assets to Japan’s top refiner Eneos in May, two sources said.

The US major had been expected to complete the deal – valued at US$1 billion or more – in the first quarter, Reuters reported earlier.

However, the timeline has since been pushed back slightly following a major energy supply disruption caused by the US-Iran war.

Chevron and Eneos declined to comment. Morgan Stanley, which has been appointed by Chevron to handle the sale, also declined to comment.

Both parties are reassessing some terms in the deal, including crude procurement for the refinery and offtake agreements for refined products, two other sources said.

Currently, PetroChina and Chevron are taking turns to supply crude to the 290,000-barrel-a-day refinery on Jurong Island every quarter.

The Chinese major shipped crude from north-east China’s Dalian to Singapore in March – in a move to fill the shortfall at SRC, Reuters reported.

PetroChina did not respond to a request for comment. Reuters reported earlier that the Chinese state major has a first right of refusal to purchase Chevron’s share.

It will also have a last look at the final sale decision.

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The refinery joint venture, which relies on the Middle East for the bulk of its crude imports, is operating at a lower rate of 60 per cent after the war drastically reduced supply to the plant.

SRC imported around 71 million barrels of crude via the Strait of Hormuz in 2025, equivalent to about 78 per cent of its total imports, the ship-tracking figures by data and analytics company Kpler showed. REUTERS