Global commodities traders Vitol and Glencore are preparing to make formal bids for Chevron’s 50% stake in Singapore’s second-largest refinery, according to multiple sources familiar with the situation. The refinery, located on Jurong Island, has an estimated total value of around $1 billion. Chevron is expected to receive final binding bids in October, following the shortlisting of these firms earlier this month. Both Vitol and Glencore, which already have refining operations in the Asia-Pacific region, aim to enhance their trade volumes in Singapore, a key hub for oil trading and the world’s largest bunkering port.
The refinery processes approximately 290,000 barrels of crude oil per day, with the other half owned by China’s PetroChina, which holds the first right of refusal to purchase Chevron’s share. It remains unclear whether PetroChina will pursue a bid, as the company did not respond to inquiries. Sources indicated that other firms might also be interested in bidding, but specifics were not disclosed.
Chevron, currently working to cut costs by up to $3 billion by the end of 2026, is also looking to divest other Asian assets, including terminal and fuel storage facilities in Australia and the Philippines. Vitol operates a refinery in Malaysia and has stakes in various terminals, while Glencore, through a joint venture, is involved in Singapore’s Aster Chemicals and Energy. Both companies declined to comment on the pending bids, as did Morgan Stanley, which is managing the sale process.