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Uncommon: Shell taps Goldman Sachs to explore Singapore refinery sale -sources

The emblem of British multinational oil and gas company Shell is displayed one day of the LNG 2023 energy alternate point to in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Report Own Licensing Rights

SINGAPORE, Aug 23 (Reuters) – Shell is concerned with a sale of its Singapore refining and petrochemical vegetation as allotment of a broader strategic evaluate and has hired funding monetary institution Goldman Sachs to explore a ability deal, said several sources shut to the topic.

The arena energy major’s sleek CEO, Wael Sawan, is focused on spending cuts over the next two years to enhance profitability while supreme dedicated to attaining in finding zero emissions by 2050.

These efforts embody the evaluate of energy and chemical substances sources on Singapore’s Bukom and Jurong islands, supplied in June, as the community seeks to repurpose its energy and chemical parks globally to present extra low-carbon solutions to clients.

“Our strategic evaluate is ongoing and we’re exploring several choices including divestment,” a Shell spokesperson urged Reuters on Wednesday.

Singapore’s sigh as a regional trading and advertising and marketing hub remains significant, she added.

Companies that are reviewing Shell’s Singapore sources embody Asia’s highest refiner, China’s Sinopec (600028.SS), as properly as world trading companies Vitol and Trafigura, the sources said.

For trading companies, the feature is viewed as a ability oil storage and distribution hub, a couple of of the sources said.

Goldman Sachs, Sinopec, Trafigura and Vitol declined to comment.

The Bukom refinery, Shell’s totally wholly owned refining and petrochemicals centre in Asia, can process 237,000 barrels per day (bpd) of wrong. In-constructed 1961, it became Singapore’s first refinery.

The complex also houses a 1 million metric heaps per twelve months (tpy) ethylene cracker and a 155,000 tpy butadiene extraction unit. These are integrated with a monoethylene glycol (MEG) plant at Shell’s petrochemicals feature on Jurong Island.

In March, Shell determined not to proceed with two initiatives it became learning to create biofuels and irascible oils in Singapore.

Reporting by Trixie Yap, Chen Aizhu and Florence Tan; Editing by Tony Munroe and David Goodman

Our Standards: The Thomson Reuters Belief Principles.

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