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Chevron Reshapes Portfolio With Singapore Refinery Stake Exit

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Key Takeaways

  • {\"0\":\"CVX plans to sell its 50% stake in Singapore\'s Jurong Island refinery, worth about $1B.\",\"1\":\"Vitol and Glencore lead the bidding, aiming to boost their reach in Asia\'s key oil hub.\",\"2\":\"The sale aligns with CVX\'s global revamp to cut up to $3B in costs and streamline operations.\"}

Chevron Corporation (CVX - Free Report) , as part of its global revamp, is reportedly preparing to sell its 50% stake in Singapore’s second-largest refinery on Jurong Island, which is valued at around $1 billion. The sale, managed by leading financial services company Morgan Stanley (MS - Free Report) , is part of Chevron’s broader plan to cut up to $3 billion in costs by 2026 to improve efficiency and stay competitive. CVX is restructuring its portfolio amidst tightening environmental regulations and evolving global fuel needs.

Chevron, currently carrying a Zacks Rank #3 (Hold), had invited the non-binding bids from potential buyers back in June 2025, where a global trading house like Glencore plc (GLNCY - Free Report) was reportedly asked to assess the refinery stake. But the first right of refusal to purchase Chevron’s share remained with PetroChina, which owns the other 50% of the Singapore refinery.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vitol & Glencore Enter the Bidding Race

Global commodities traders Vitol and Glencore have emerged as frontrunners to acquire Chevron’s stake, and the final binding bids will be submitted in the forthcoming month. Both firms already hold refining and trading assets across Asia-Pacific and see this move as an opportunity to expand their footprint in the region’s most strategic oil hub. Singapore plays a crucial role in global fuel flows, serving as both Asia’s biggest oil trading center and the world’s top bunkering port. Their pursuit of Chevron’s stake reflects a broader trend — aggressive expansion by traders and national oil firms as big oil companies reposition themselves globally.

Vitol already operates refining and terminal assets in Malaysia, Singapore and Australia. At the same time, Glencore, in partnership with Indonesia’s Chandra Asri, holds a stake in Singapore-based Aster Chemicals and Energy, which it acquired from Shell plc (SHEL - Free Report) in a deal finalized this April.

CVX’s Priority to Reshuffle in Asia & Beyond

Earlier this month, Chevron, with an intent to reduce expenses and realign its focus within the downstream segment, had planned to invest in places like South Korea, where it could invest heavily in petrochemicals and heavy oil upgrading.

During the year, CVX took several bold steps as part of its global restructuring strategy to cut costs and improve efficiency. In June, the company made two significant decisions. First, it announced plans to advance with global workforce reduction by up to 20% by the end of 2026, aiming to lower costs and enhance long-term competitiveness. Second, the company decided to sell 25% of its working interest in U.S. offshore acreage, covering approximately 1,000 square kilometers.

Additionally, in July, Chevron announced that it will shut down its Aberdeen office in Scotland, ending more than 50 years of operations in the North Sea hub. This closure coincided with the company’s broader exit strategy from the U.K. North Sea, a mature basin that once stood at the heart of the global offshore energy sector. The move signaled Chevron’s retreat from aging assets that no longer met its profitability benchmarks.

Chevron’s other regional assets, including terminals in Australia and the Philippines and retail outlets in Malaysia, are also up for sale. The deal reflects a wider trend in the energy sector — international oil majors scaling back in some regions while traders and state-backed firms expand.

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