Japan's ENEOS Holdings announced on Thursday that it would acquire shares in US Chevron's entities in Southeast Asia and Australia. This includes a 50% stake in the refinery of Singapore Refining Company (SRC), with a capacity of 290,000 b/d. The total acquisition cost amounts to $2.17 bil (Yen 336 bil).

　This was announced at the financial results presentation for fiscal year 2025 on Thursday. This is part of its 4th Mid-Term Business Plan. The company positioned this as an "M&A deal thoroughly considered from a global perspective," and stated its policy to further expand its overseas business and trading operations. According to the announcement materials, while overseas sales in fiscal year 2024 accounted for 16% of the total, it aims to expand this to approximately 30% in the short term and about 50% by fiscal year 2030 through this M&A. The completion of the share acquisition is scheduled for 2027.

　In Japan, the decline in demand for petroleum products continues due to the declining population. The Ministry of Economy, Trade and Industry (METI) indicated on Apr 25, in its outlook for petroleum product demand for fiscal years 2025-2029, that fuel oil demand is expected to decrease by an annual average of 2.2% and by 10.5% over five years.

　Against this backdrop, ENEOS has moved to expand its business in overseas markets, including Southeast Asia, where future fuel demand growth is expected. Additionally, Japanese refineries are prone to unit troubles due to aging facilities. With a view to stable overseas operations, the company likely aimed to acquire cost-competitive overseas export-oriented refineries.