Shell taps Goldman Sachs to explore Singapore refinery sale

SINGAPORE, Aug 23 (Reuters): Shell is considering a sale of its Singapore refining and petrochemical plants as part of a broader strategic review and has hired investment bank Goldman Sachs to explore a potential deal, said several sources close to the matter.
The global energy major's new CEO, Wael Sawan, is targeting spending cuts over the next two years to boost profitability while remaining committed to achieving net zero emissions by 2050.
Those efforts include the review of energy and chemicals assets on Singapore's Bukom and Jurong islands, announced in June, as the group seeks to repurpose its energy and chemical parks globally to offer more low-carbon solutions to customers.
"Our strategic review is ongoing and we are exploring several options including divestment," a Shell spokesperson told Reuters on Wednesday.
Singapore's position as a regional trading and marketing hub remains important, she added.
Companies that are reviewing Shell's Singapore assets include Asia's largest refiner, China's Sinopec (600028.SS), as well as global trading companies Vitol and Trafigura, the sources said.
For trading companies, the site is seen as a potential oil storage and distribution hub, some of the sources said.