Glencore-Backed Group Nears Deal for Shell’s Singapore Assets

A consortium that includes Swiss miner and commodities trader Glencore (GLEN.L) and Indonesia's PT Chandra Asri Pacific is in advanced talks to buy Shell's (SHEL.L) oil refinery and petrochemical units in Singapore, in a deal that could be worth about $1 billion, Bloomberg News reported on Friday.

The parties are working on the details of a transaction that could be announced as soon as the coming weeks, Bloomberg reported, citing people with knowledge of the matter.

The assets include a refinery capable of processing 237,000 barrels per day (bpd) of oil and a 1-million-metric-ton-per-year ethylene plant located on Bukom island, just south of Singapore, as well as a plant that produces mono-ethylene glycol on Jurong island in the Southeast Asian city-state's west.

Under the terms of the potential deal, PT Chanda Asri would become the operator and majority owner of the assets, while Glencore would hold a non-operating minority stake, the report said.

Shell, Glencore and PT Chanda Asri did not immediately respond to Reuters requests for comment.

Shell announced a strategic review of the assets last June.

Reuters reported earlier this year that Glencore was working jointly with PT Chandra Asri Petrochemical to evaluate the assets.

(Reporting by Eva Mathews; Editing by Shailesh Kuber)