Indonesia-Glencore to Acquire Shell's Oil Assets in Singapore, Targeting Completion by Year's End

TEMPO.CO, Jakarta - Indonesian Chemical and Infrastructure Solutions Company, PT Chandra Asri Pacific Tbk, along with one of the world's natural resource companies, Glencore, are reported to have signed a sales agreement with Shell Singapore Pte. Ltd or SSPL. The sales agreement between Indonesia-Glencore and Shell Singapore is to acquire all the ownership of oil assets owned by Shell Energy and Chemicals Park Singapore or SECP.

The news was confirmed by President Director and CEO of Chandra Asri Group, Erwin Ciputra. He stated that the agreement to acquire Shell's oil assets in Singapore further strengthens the business resilience of the chemical and infrastructure company.

"The integration of new energy and chemical platforms on Pulau Bukom and Jurong, Singapore, with our established presence in Cilegon, Indonesia, will drive product offerings expansion and service enhancement," he said in a written statement received by Tempo on Saturday, May 11, 2024.

The success of Chandra Asri Group and Glencore in acquiring Shell's oil assets in Singapore was through a bidding process. The two companies formed a joint venture called CAPGC Pte. Ltd. The majority ownership of the company is controlled by Chandra Asri Group.

The acquisition agreement of these oil assets consists of a crude oil refinery with a processing capacity of 237 thousand barrels per day, a 1.1 million metric ton per year ethylene cracker on Pulau Bukom, Singapore, and downstream chemical assets on Jurong Island, Singapore.

Through the acquisition of ownership of these assets, according to Erwin, it will open up possibilities to capture new opportunities in the Southeast Asian market. This transaction is targeted to be completed by the end of this year, as it is still awaiting regulatory approval.

Meanwhile, Managing Director of Glencore Singapore, Quek Chin Thean, is optimistic that this acquisition agreement will succeed. He stated that SECP is a key asset in Southeast Asia because of its strategic location in the center of leading energy trading.

He believes that the existence of an integrated refinery and chemical complex is not only important in opening up new opportunities to remain competitive amid energy transitions but also in planning long-term growth in the future, expanding and extending offerings, and providing outstanding value for all our stakeholders.

NOVALI PANJI NUGROHO

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