Chinese CNOOC and Vitol trader apply for Shell’s Singapore oil refining

Shell can sell its refineries in Singapore to Chinese CNOOC, Vitol or private NC.

Four companies are on Shell’s shortlist for the sale of the Bukom and Jurong refineries in Singapore.

Shell has shortlisted at least four companies, including state-owned China National Offshore Oil Corp and the world’s largest energy trader Vitol, as bidders for its Singapore refining assets, Reuters writes. Two private Chinese chemical manufacturers — Eversun Holdings in Fujian Province and Befar Group based in Shandong Province — were also shortlisted.

The companies were asked to submit official applications by the end of February, two agency sources said. Shell intends to complete the deal by the end of 2024.

The assets include an oil refinery with a capacity of 237 thousand b/d and an ethylene production plant with a capacity of 1 million tons per year on Singapore’s Bukom Island. Shell announced a strategic asset review in June, and sources said that Goldman Sachs had been hired to manage the potential one.

CNOOC, which has a long-term partnership with Shell in a petrochemical facility in southern China, is looking to increase its supply portfolio and expand global trade in oil and chemicals, a source familiar with CNOOC’s plans told Reuters.

For Swiss Vitol, Shell’s Singapore site may be attractive as an oil storage and distribution center. That year, Vitol supplied more than 500 thousand b/d to processing facilities in Malaysia, Australia, Europe and the Middle East.