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

[TOKYO/SINGAPORE] Eneos Holdings said on Thursday (May 14) it will buy US major Chevron’s 50 per cent stake in Singapore Refining Company (SRC) and other assets in South-east Asia and Australia for nearly US$2.2 billion, in its first refining foray outside of 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 South-east Asia and Oceania,” said Eneos Holdings CEO Tomohide Miyata.

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.

“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. Chevron previously sold its Hong Kong retail stations to Thai refiner Bangchak for US$270 million.

The latest 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 Eneos’ 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,” 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.

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“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.

Eneos eyes more overseas M&A deals

Eneos is looking to widen its overseas operations via the purchases from Chevron, while looking at other buys.

“With regard to our overseas operations, which currently account for just under 20 per cent of sales, we intend to use this M&A as a catalyst to significantly expand this share – including through future growth in our trading business – with the aim of raising it to more than 50 per cent by fiscal 2030,” said Eneos’ Miyata.

He said he did not believe the latest acquisition of assets from Chevron alone would be sufficient to achieve that goal. “We aim to reach the target through future overseas M&As, and we are already taking steps in that direction,” he added. REUTERS