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Shell (NYSE:SHEL) said Wednesday it agreed to sell its refining and petrochemical assets in Singapore, Asia’s main oil hub, to a joint venture between Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) and Indonesian chemicals company Chandra Asri Capital; financial terms were not disclosed, although Bloomberg reported the deal could be worth ~$1B.
The deal will transfer all of Shell’s (SHEL) interest in Shell Energy and Chemicals Park Singapore to the joint venture company CAPGC, the company said.
The assets include a refinery capable of processing 237K bbl/day of oil and a 1M metric tons/year ethylene plant located on Bukom island, just south of Singapore, as well as a plant that produces monoethylene glycol on Jurong island.
“This agreement marks a significant step in Shell’s ongoing efforts to high-grade our chemicals and products business,” the company said.
For Glencore (OTCPK:GLCNF), (OTCPK:GLNCY), the deal provides a physical foothold for its trading in Asia; its only refining asset currently is a 100K bbl/day facility in Cape Town, South Africa.
