Eneos to buy Chevron fuel assets for $2.17B

JAPANESE ENERGY GROUP Eneos Holdings, Inc. will acquire the fuel and lubricant marketing businesses of Chevron Corp. across the Asia-Pacific region in a $2.17-billion deal that includes operations in the Philippines.

In an e-mailed statement on Thursday, Eneos said it has signed share purchase agreements with Chevron units covering fuel distribution and retail operations in Singapore, Malaysia, the Philippines, Australia, Vietnam and Indonesia.

The transaction will be executed through a special purpose vehicle to be established in Singapore by Eneos. Through this structure, Eneos will acquire full ownership of Chevron Singapore Pte. Ltd., Chevron Malaysia Ltd., Chevron Philippines, Inc., Chevron Australia Downstream Holdings Pty Ltd. and PT Chevron Oil Products Indonesia.

Eneos will also buy a 50% nonoperated stake in Singapore Refining Co., a joint venture between Singapore Petroleum Co. Ltd. and Chevron Singapore.

The deal marks Eneos’ first entry into overseas fuel retail and marketing operations outside Japan and is expected to be completed next year.

“This investment represents a significant step in strengthening the business platform that connects Japan with Southeast Asia and Oceania,” Eneos Chief Executive Officer Tomohide Miyata said.

He said the company aims to expand its fuel supply and trading network by combining operations across the region with its existing business base in Japan.

Eneos Holdings, founded in 1888, operates in petroleum, natural gas, electricity, city gas and renewable energy. The company said the acquisition would help it capture demand growth in Southeast Asia and Australia, while fuel consumption in Japan continues to decline.

“By integrating the overseas assets to be acquired with our existing business platform in Japan, we will optimize our supply chain and contribute to a stable energy supply in the Asia-Pacific region over the medium to long term,” Eneos said.

Andy Walz, president of Chevron’s downstream, midstream and chemical business, said the company’s more than 90 years of operations in the region have supported customers and communities through the Caltex brand.

Chevron is one of the world’s biggest integrated energy companies, producing crude oil and natural gas and selling refined fuels and lubricants globally.

Chevron entered the Philippines in 1917 and operates nearly 600 Caltex service stations and 20 supply facilities nationwide. — Sheldeen Joy Talavera