Chevron Invites Bids to Divest 50% Stake in Singapore Refinery

Core Viewpoint - Chevron Corporation is initiating the sale process for its 50% stake in Singapore Refining Company, inviting non-binding bids from potential buyers, including PetroChina, which holds the first right of refusal [1][6]. Group 1: Corporate Restructuring - The sale is part of Chevron's broader global restructuring efforts aimed at optimizing its portfolio by focusing on core growth assets, cutting costs, and enhancing profitability [2][4]. - Earlier this year, Chevron announced plans to lay off 15-20% of its employees as part of its restructuring strategy [2]. Group 2: Recent Divestments - Chevron recently divested its interest in Chevron Phillips Singapore Chemicals to Aster Chemicals and Energy, marking a trend of energy majors exiting Singapore's refining sector due to rising operating costs from a carbon tax [3][9]. - The company is also evaluating the market for other assets in Asia, including terminal and fuel storage facilities in Australia and the Philippines [4]. Group 3: Singapore Refining Company Overview - Singapore Refining Company is a 50/50 joint venture between Chevron and PetroChina, with a crude processing capacity of 290,000 barrels per day, making it the smallest refinery in Singapore [5]. - The facility has seven shipping berths for very large crude carriers and supports a well-established distribution network for its fuel products [5]. Group 4: Valuation and Market Interest - Chevron's stake in SRC is estimated to be valued between $300 million and $500 million, with bids expected in July [6][9]. - Global trading house Glencore is among the entities invited to assess the refinery stake, reflecting growing interest in the asset [6].