Shell to sell refining facilities on Pulau Bukom and Jurong Island

Deal could be worth 14 billion and comes after oil giant’s strategic review of assets

- Ovais Subhani

Oil giant Shell has agreed to sell its energy and chemicals park on Singapore's Pulau Bukom and Jurong Island to CAPGC, a joint venture comprising Indonesia's Chandra Asri Capital and global commodities trader Glencore.

The sale of Shell's refining facilities to CAPGC, including Singapore's first oil refinery built in 1961, comes after the London-listed company placed the assets under a strategic review in 2023 to boost its overall profitability and lower its carbon footprint worldwide.

The transaction, subject to regulatory approval, is expected to be completed by the end of 2024.

All employees "providing dedicated support" to the Shell Energy and Chemicals Park Singapore will retain their employment with CAPGC, Shell said on May 8.

The Economic Development Board (EDB) welcomed the agreement between Shell and CAPGC, and the continued employment that CAPGC will provide to the local workforce.

The value of the deal was not announced by Shell, but Bloomberg News on May 3 said the deal could be worth US$1 billion (S$1.36 billion).

"This agreement marks a significant step in Shell's ongoing efforts to high-grade our chemicals and products business, and is a testament to our commitment to deliver more value with less emissions, as outlined at our Capital Markets Day last year," said Mr Huibert Vigeveno, Shell's director for its downstream, renewable and energy solutions business.