SINGAPORE: Shell said on Wednesday it has agreed to sell its refinery and petrochemical assets in Singapore to a joint venture between Indonesia's Chandra Asri Capital and Glencore Asian Holdings.

The transaction will transfer all of Shell’s interest in Shell Energy and Chemicals Park Singapore to the joint venture company CAPGC, Shell said in a statement.

Subject to regulatory approval, the transaction is expected to complete by the end of 2024, Shell added.

Reuters reported last August that Shell had hired Goldman Sachs to explore a potential sale of its refining and petrochemical plants in Singapore as part of a broader strategic review globally to become a lower-carbon operator.

The buyer of Shell's assets on Bukom and Jurong islands would gain a foothold in Asia's main oil trading hub but would also face competition from newer refineries elsewhere - the Bukom facility opened in 1961 - as well as a Singapore carbon tax set to rise sharply in 2024.

 - Reuters