S'pore Petroleum to buy BP's stake

S'pore Petroleum to buy BP's stake

SINGAPORE: Singapore Petroleum Co. Ltd. said on Monday it will buy British Petroleum Singapore's one-third stake in Singapore Refining Company Pte. Ltd. and one-sixth equity interest in Tanker Mooring Services Co. Pte. Ltd. in a deal worth about US$140 million.

Singapore Petroleum said the acquisition would double its refining capacity and strengthen its position as a leading petroleum products supplier in the Asia Pacific region.

Singapore Petroleum said in a statement that the price will also cover the purchase of BP Singapore's interests in crude and product inventories.

It said the acquisition is expected to be completed by June 30.

The Singapore Refining Company is owned by a consortium that includes Singapore Petroleum and BP Singapore and runs an oil refinery situated on Singapore's Jurong Island with a maximum capacity of 285,000 barrels per day. Caltex Trading Pte. Ltd. and Caltex Singapore Pte. Ltd. are also part of the consortium.

Singapore Petroleum is partly owned by Keppel Oil & Gas Services Pte. Ltd., a subsidiary of Keppel Corp, which is 32 percent owned by the government's holding company, Temasek. --AFP