As part of a push to streamline global assets and reduce costs, U.S. supermajor Chevron is inviting non-binding bids from potential buyers of its 50% stake in a refinery in Singapore, Reuters reported on Thursday, citing multiple sources with knowledge of the matter.
Chevron seeks non-binding bids from potential buyers in July and has already hired Morgan Stanley to explore the sale of its 50% stake in Singapore Refining Company (SRC), as well as other assets in Asia, according to one of Reuters’ sources.
Singapore Refining Company is a 50/50 joint venture between Chevron and Chinese state-run oil and gas giant PetroChina. The refinery in Singapore can process 290,000 barrels per day (bpd) of crude oil, with the fuel traded through a regional and international network, and an established distribution in Singapore and within Jurong Island.
PetroChina has the right of first refusal on Chevron’s stake in the refinery.
Commodity trading giant Glencore has been reportedly offered to review the Chevron stake, some of Reuters’ sources said.
Chevron is also exploring potential sales of other assets in the Asia Pacific region, including fuel storage facilities and terminals in the Philippines and Australia, according to Reuters’ sources.
Chevron has been working to high-grade its global portfolio and focus on core growth assets to reduce costs and boost profits.
Earlier this year, Chevron said it would lay off 15-20% of its global workforce and reorganize its business structure. The company’s Oil, Products & Gas organization will be consolidated into two segments: Upstream and Downstream, Midstream & Chemicals. Mark Nelson will continue to lead this organization as vice chairman and executive vice president, Oil, Products & Gas.
As part of the larger cost-cutting drive that will see its global workforce reduced by a fifth by 2026, Chevron is also giving the slip to 800 of its employees in the Permian.
By Tsvetana Paraskova for Oilprice.com
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