Eneos to Acquire Chevron's Singapore Refinery Stake for $2.2B

Eneos Holdings announced on May 14 that it will acquire a 50% stake in Singapore Refining Company and other assets across Southeast Asia and Australia from US oil major Chevron for approximately $2.2 billion, marking the Japanese company’s first refining operation outside Japan. The deal, which includes Chevron’s assets in Vietnam, Australia, the Philippines, and Malaysia, is expected to close in 2027, according to Eneos.

Deal Structure and Assets

The acquisition encompasses Chevron’s stake in Singapore Refining Company (SRC), which operates a 290,000 barrels-per-day refinery in Singapore. PetroChina holds the other 50% stake through its subsidiary Singapore Petroleum Co. The deal also includes Chevron’s Penjuru terminal and lubricants facility in Singapore, which has a storage capacity of approximately 400,000 cubic meters, equivalent to roughly 2.5 million barrels of oil.

Strategic Rationale

Eneos Holdings CEO Tomohide Miyata stated: “This investment represents a significant step in strengthening the business platform that connects Japan with Southeast Asia and Oceania.” Chevron’s president of downstream, midstream, and chemicals, Andy Walz, said the agreement “reflects Chevron’s disciplined approach to managing its international portfolio,” noting that Chevron has been seeking to divest refining and storage assets in Asia to streamline operations and reduce costs.

According to Sushant Gupta, Wood Mackenzie’s Asia Pacific refining and oils research director, the acquisition will be strategically important for Eneos given that “its domestic market in Japan is saturated and expected to decline,” and taking over a fuel terminal in one of the world’s largest oil storage and blending hubs will expand Eneos’ trading capabilities, especially in refined fuel.

Eneos’ Expansion Ambitions

Eneos currently operates nine refining complexes in Japan, including a joint venture with PetroChina. The company aims to significantly expand its overseas operations, which currently account for just under 20% of sales. Miyata stated: “With regard to our overseas operations, which currently account for just under 20% of sales, we intend to use this M&A as a catalyst to significantly expand this share — including through future growth in our trading business — with the aim of raising it to more than 50% by fiscal 2030.”

Miyata added that the Chevron acquisition alone would not be sufficient to reach that goal: “We aim to reach the target through future overseas M&As, and we are already taking steps in that direction.”

Market Context

The SRC stake sale is the second major refinery deal in Singapore following Shell’s sale of its Bukom refining and petrochemical complex in 2024. Chevron previously sold its Hong Kong retail stations to Thai refiner Bangchak Corp for $270 million. Morgan Stanley was appointed by Chevron to handle the sale of the refinery stake and other Asian assets.