JAKARTA. PT Chandra Asri Pacific Tbk (TPIA) and Glencore PLC have signed a sale and purchase agreement to acquire the entire portion of Shell Singapore Pte in Shell Energy and Chemicals Park Singapore (SECP).

Said agreement was signed after TPIA and Glencore, through a joint venture named CAPGC Pte. Ltd., participated in a competitive tender for Shell Singapore’s shares in SECP.

With this acquisition, TPIA and Glencore will claim control over crude oil refinery with a capacity of 237,000 barrels of oil per day. In addition, TPIA and Glencore will also take over Ethylene Cracker facility with a capacity of 1.1 million metric tons per year in Bukom Island, as well as down-streamed chemicals assets in Jurong Island.

“This acquisition is a success from our programmed M&A strategy to be the leading chemical and infrastructure in the region and further strengthen out business resilience,” said Erwin Ciputra, President Director of TPIA, in an official statement received by IDNFinancials.

On the other hand of the agreement, Queck Thean, Managing Director of Glencore, believes that SECP is a vital asset in Southeast Asia that has a strategic position, in which Singapore has become the centre of energy trading excellence in Asia.

“The integrated complex of oil and chemical refinery is an advanced operation led by highly talented and professional workers, playing an essential role in opening up new opportunities in order to stay competitive amidst energy transition, planning future long-term growth, expanding and extending our offers, as well as providing profound values to our stakeholders,” Thean said.

It is worth mentioning that as of now, the acquisition transaction still awaits approval from related regulators. The acquisition is expected to be concluded in late 2024. (KR/ZH)