U.S. oil giant Chevron is taking steps to streamline its global portfolio and reduce operational costs by inviting non-binding bids for its 50% stake in the Singapore Refining Company (SRC), citing multiple sources familiar with the matter.
Chevron plans to solicit these initial bids in July and has engaged Morgan Stanley to manage the potential sale, which also includes other assets across Asia. The Singapore Refining Company is a joint venture equally owned by Chevron and Chinese state-owned PetroChina. The refinery, located on Jurong Island, has the capacity to process 290,000 barrels of crude oil per day and supplies fuel through an extensive regional and international distribution network.
PetroChina holds the right of first refusal on Chevron’s stake, giving the Chinese partner priority to match any offer.
Among the interested parties reportedly invited to review the stake is commodity trading powerhouse Glencore.
In addition to the Singapore refinery stake, Chevron is exploring divestments of other Asia-Pacific assets, including fuel storage and terminal facilities in the Philippines and Australia.
This move aligns with Chevron’s broader strategy to focus on core growth assets, cut costs, and enhance profitability. Earlier this year, the company announced plans to reduce its global workforce by 15 to 20 percent and to restructure its business. Chevron will consolidate its Oil, Products & Gas operations into two segments: Upstream, and Downstream, Midstream & Chemicals. Mark Nelson will remain vice chairman and executive vice president overseeing this reorganized unit.
As part of these cost-cutting measures, Chevron plans to cut approximately 800 jobs in the Permian Basin, continuing its effort to trim workforce size by 20 percent by 2026.
The company’s ongoing asset sales and restructuring reflect the shifting dynamics in the global energy market and Chevron’s efforts to remain competitive amid evolving industry challenges.
