Japanese refiner Eneos Holdings Inc. agreed to purchase some of Chevron Corp.’s refining and retail assets across the Asia-Pacific for $2.17 billion in cash, significantly expanding its footprint across the region.
The deal includes Chevron’s 50 percent stake in an oil refinery in Singapore, along with other retail fuel and lubricant marketing businesses in the city-state, Malaysia, Indonesia, the Philippines, Australia and Vietnam, according to a statement from Eneos. The transaction is expected to close in 2027.
“While petroleum demand in Japan is expected to continue declining over the medium to long term, demand in Southeast Asia is expected to grow, supported by economic development in the region,” the company said. Bloomberg reported last month that Eneos was the final bidder for the assets.
The transaction would be financed with existing cash reserves, Chief Financial Officer Soichiro Tanaka said at a press briefing in Tokyo on Thursday for the company’s full year earnings.
The deal gives Eneos, Japan’s biggest refiner, its first stake in a refinery outside of the country, and a stronger presence in Asia’s oil-trading and supply hub of Singapore. The group has been expanding its trading team in the city-state to handle more paper-market instruments including derivatives.
“Chevron is committed to supporting an orderly transition,” Andy Walz, the president of the company’s downstream, midstream and chemicals said in a joint statement with Eneos. He added that the Japanese company was a “valued partner with whom we have a long-standing commercial relationship.”
Earlier this year, Chevron agreed to sell its Hong Kong fuel business to Bangchak Corp. for $270 million, while other oil majors including Exxon Mobil Corp. have offloaded assets in Southeast Asia in recent years. Shell Plc sold its refining and chemical facilities on Singapore’s Bukom and Jurong islands to a joint venture between PT Chandra Asri Pacific and Glencore Plc.
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