Chevron Invites Bids to Divest 50% Stake in Singapore Refinery

Chevron Corporation CVX has reportedly begun the sale process for its 50% stake in Singapore Refining Company (“SRC”), inviting non-binding bids from potential buyers. Among those approached is PetroChina, which already owns the remaining 50% through its Singapore Petroleum Co Ltd unit and holds the first right of refusal.

The move is part of the U.S. oil giant’s broader efforts of global restructuring and streamlining operations. Chevron has been optimizing its global portfolio by prioritizing core growth assets, aiming to cut costs and enhance profitability. Earlier this year, Chevron announced plans to lay off 15-20% of its employees to restructure operations.

Global Restructuring in Singapore and Beyond

Last month, Chevron divested its interest in Chevron Phillips Singapore Chemicals to Aster Chemicals and Energy, a joint venture between Chandra Asri and Glencore. The potential sale of the refinery would mark the second recent departure by a global energy major from Singapore’s refining sector, which faces higher operating costs due to a carbon tax that has impacted its competitiveness compared with other regions.

The company’s restructuring is not limited to Singapore. Chevron is also assessing the market for other assets in Asia, including terminal and fuel storage facilities in Australia and the Philippines. Morgan Stanley has been appointed to oversee the sale process for these assets, including the SRC refinery.

Taking a Look at Singapore Refining Company

Singapore Refining Company is a 50/50 joint venture between Chevron and China’s state-owned oil and gas major, PetroChina. With a crude processing capacity of 290,000 barrels per day, it is the smallest refinery in Singapore. The facility features seven shipping berths capable of accommodating very large crude carriers. Its fuel products are traded regionally and internationally, supported by a well-established distribution network across Singapore and Jurong Island.

Growing Interest, High Valuations

Global trading house Glencore is among the entities reportedly invited to assess the refinery stake. Estimates suggest Chevron’s share in SRC could be valued between $300 million and $500 million. The sale process, with offers expected in July, comes at a time when energy majors are sharpening their focus on profitability and efficiency in a volatile market.

CVX’s Zacks Rank & Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companies that participates in every aspect related to energy, from oil production to refining and marketing. Currently, CVX has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Global Partners LP GLP, Subsea 7 S.A. SUBCY and Gibson Energy Inc. GBNXF. While Global Partners and Subsea 7 currently sport a Zacks Rank #1 (Strong Buy) each, Gibson Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. GLP owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for Global Partners’ 2025 earnings indicates 17.84% year-over-year growth.

Subsea 7 operates as an engineering, construction and services contractor to the offshore energy industry worldwide. The Zacks Consensus Estimate for Subsea 7’s 2025 earnings indicates 95.52% year-over-year growth.

Calgary, Alberta-based Gibson Energy is an oil infrastructure company with its principal businesses consisting of the storage, optimization, processing and gathering of crude oil and refined products. The Zacks Consensus Estimate for GBNXF’s 2025 earnings indicates 36.76% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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