UK energy giant Shell to sell Singapore oil and chemical arm in USD 1bn deal

By Velizar Velikov, Head of M&A Database at EMIS

UK-based energy giant Shell announced its decision to sell its Singaporean oil and chemical division, Shell Energy and Chemicals Park Singapore, to Indonesian petrochemical producer Chandra Asri Petrochemical and Swiss commodity trading and mining company Glencore for an undisclosed amount. According to a report by Offshore Technology, the transaction could be valued at up to USD 1bn.

The acquisition is subject to regulatory approval and is expected to be finalized by the end of 2024. It will be conducted through the buyers' joint venture, CAPGC, which is majority-owned by Chandra Asri and was selected through a competitive bidding process.

Shell Energy and Chemicals Park Singapore includes a refinery with a processing capacity of 237,000 barrels per day, a 1.1 million metric ton per annum ethylene cracker located on Bukom Island, and downstream chemical assets on Jurong Island. Established in 1961, this facility was Singapore’s first refinery. Shell Jurong Island spans over 60 hectares and produces a variety of petrochemicals, including ethylene oxide, ethoxylates, styrene monomer, and propylene oxide, making it Shell’s largest petrochemical production and export hub in the Asia Pacific region.

Integrating these assets into Chandra Asri’s established operations in Cilegon, Indonesia, will enhance product offerings and services, allowing the group to seize new opportunities in the growing Southeast Asian markets.

Chandra Asri, based in Jakarta, is Indonesia's largest petrochemical company, producing ethylene, propylene, mixed C4, and pyrolysis gasoline. Listed on the Indonesian Stock Exchange, it employs over 2,200 staff.

Glencore is a leading global producer and marketer of more than 60 commodities, involved in the marketing of metals, minerals, energy products, and agricultural goods, as well as their production, refining, processing, storage, and transport. The company has a workforce of over 150,000 employees and contractors across more than 35 countries.

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