ExxonMobil buys Singapore petrochem plant from Jurong Aromatics

A sign is seen at the entrance of the Exxonmobil Port Allen Lubricants Plant in Port Allen, Louisiana, November 6, 2015. REUTERS/Lee Celano

ExxonMobil Corp said on Thursday it has reached an agreement to buy a refining and petrochemical plant owned by Jurong Aromatics (JAC) in Singapore that will boost its output and meet demand in Asia.

The company expects to complete the transaction in the second half of 2017, boosting its aromatics production in Singapore to more than 3.5 million tonnes per year (tpy), including 1.8 million tpy of paraxylene, a raw material for textiles and bottles.

The plant will be integrated with ExxonMobil’s existing petroleum complex on Jurong Island, said Gan Seow Kee, chairman and managing director of ExxonMobil Asia Pacific Pte Ltd.

Singapore houses ExxonMobil’s largest refining-petrochemical complex with a crude oil processing capacity of 592,000 barrels per day and two steam crackers.

The Korea Herald reported in March that ExxonMobil had outbid Lotte Chemical Corp with a price of 2 trillion won or about $1.7 billion for the JAC plant.

Exxon’s spokeswoman said it is not the company’s practice to discuss details of its commercial transactions.

JAC’s condensate splitter and petrochemical units – at a construction cost of $2.4 billion – started operations in Asia in 2014 to produce paraxylene to meet demand from textile and bottle manufacturers in China.

JAC’s debt mounted, though, as commodities went into freefall in the middle of that year, and it stopped operations at end-2014 to fix a technical issue. Its lender BNP Paribas appointed accounting firm Borelli Walsh as the receiver and manager of JAC.

The JAC plant resumed operations in July 2016 under tolling agreements with BP and Glencore.

Also Read: ExxonMobil in talks to buy Singapore’s Jurong Aromatics

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Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.