ENEOS to acquire Chevron downstream assets across Southeast Asia, Australia

Japan's ENEOS Holdings has signed agreements to acquire Chevron's downstream fuels and lubricants marketing businesses across six Asia-Pacific markets for $2.17 billion, the companies said May 14.

The share purchase agreements include a 50% stake in Singapore Refining Co., as ENEOS seeks to expand its overseas fuels platform amid declining petroleum demand in Japan and rising demand in Southeast Asia, the Japanese energy company said.

ENEOS will acquire 100% of the equity in Chevron Singapore (including its interests in SRC and Chevron Lubricants Vietnam), Chevron Malaysia, Chevron Philippines, Chevron Australia Downstream and Chevron Oil Products Indonesia through a special purpose vehicle.

Tomohide Miyata, President and CEO of ENEOS Holdings, said at an earnings press conference in Tokyo that the refiner will likely get a handsome return on the acquisition, while increasing ENEOS's overseas sales to account for around 50% of the group's total sales in fiscal year 2030-31 (April to March). The overseas sales will account for around 30% after the acquisition of Chevron assets, compared with 16% in fiscal year 2024-25.

The transaction is expected to close in 2027, ENEOS said.

A Chevron spokesperson told Platts, part of S&P Global Energy, on May 14 that Chevron will continue to have a presence in the Asia-Pacific through its retained downstream, chemicals, supply and trading, shipping and other significant upstream businesses and assets.

"This transaction does not include Chevron's Singapore affiliate, which supplies jet fuel; Chevron's Oronite Singapore business; or downstream interests in mainland China, Thailand, Cambodia, South Korea, Pakistan or Sri Lanka," the spokesperson said.

SRC has a refining capacity of 290,000 b/d and one tank terminal for fuel products and lubricants with a storage capacity of 3.1 million barrels. ENEOS will gain three terminals in Australia with a storage capacity of 1.3 million barrels, three terminals in Malaysia with a storage capacity of 800,000 barrels and five terminals in the Philippines with a storage capacity of 2 million barrels.

As part of the transaction, ENEOS will enter into a trademark license agreement with Chevron Brands International for fuels and lubricants, allowing ENEOS to market fuels under the Caltex brand while Chevron retains ownership of the brand, the spokesperson said, adding that Chevron and ENEOS will continue to operate independently until the transaction is completed.

According to briefing materials accompanying the earnings press conference, ENEOS increased the refining capacity of its Chiba refinery from 129,000 b/d to 155,100 b/d and its Sakai refinery from 141,000 b/d to 150,000 b/d as of the end of March 2026, while decreasing the capacity of its Kashima refinery from 210,100 b/d to 175,000 b/d. The total capacity of ENEOS's nine domestic refineries is 1,641,400 b/d.

Capturing growth

ENEOS said the acquisition forms part of its medium-term strategy -- laid out in its Fourth Medium-Term Management Plan published in May 2025 -- to reorganize its portfolio through targeted mergers and acquisitions, particularly in overseas fuels businesses capable of "early monetization."

"By acquiring a cost-competitive, export-oriented refinery and downstream fuels and lubricants businesses in these markets, the ENEOS Group aims to capture demand growth in the region and strengthen our trading opportunities in Australia, a key export market for Japan," the company said.

ENEOS will also optimize its supply chain in the Asia-Pacific region over the medium to long term by integrating the overseas assets it acquires with its existing business platform in Japan.

The acquired businesses are expected to contribute about $250 million in operating profit and $380 million in EBITDA under ENEOS' fiscal year 2029-30 (April-March) planning assumptions, ENEOS said.

Chevron said the sale reflected its "disciplined approach to managing our international portfolio," while expressing confidence in ENEOS as a long-term steward of the Caltex business in the region.

When asked how ENEOS plans to integrate the acquired assets into its existing supply chain, an ENEOS spokesperson said Chevron will continue to operate the businesses until completion of the transaction, while ENEOS plans to maintain its current operations at this stage.

In 2025, Japan posted domestic oil product sales of 2.369 million barrels/day, compared with 2.402 million b/d in 2024, 2.530 million b/d in 2023 and 2.616 million b/d in 2022, according to METI data.