Indonesia’s Chandra Asri to buy ExxonMobil’s Esso petrol stations in Singapore

SINGAPORE – Indonesia’s Chandra Asri Pacific is acquiring ExxonMobil’s network of Esso-branded petrol stations in Singapore as it expands its operations in the Republic.

Chandra Asri will continue to sell Esso-branded fuels and operate the service stations under the Esso brand, Ms Geraldine Chin, chairman and managing director of ExxonMobil Asia Pacific, said on Oct 24 in response to queries from The Straits Times.

The deal includes Esso’s 60 petrol stations here and the associated supply agreements.

The purchase price was not disclosed, but sources told Bloomberg in December 2024 that such a sale could raise about US$1 billion (S$1.3 billion).

Ms Chin said the company aims to close the sale before the year end, subject to regulatory approvals and other matters.

“We anticipate business as usual during the transition period and will work with Chandra Asri to provide a smooth experience for our customers, including continued recognition of loyalty programme benefits,” she said.

Chandra Asri president and chief executive Erwin Ciputra said in a statement: “Our expansion into Singapore’s retail fuel ecosystem represents a strategic step in shaping an integrated platform for regional growth.

“Singapore’s robust fuel retail network and business environment provide a compelling foundation for Chandra Asri to advance as a transformative energy, manufacturing and infrastructure solutions leader in South-east Asia.”

Jakarta-listed Chandra Asri – controlled by Indonesian tycoon Prajogo Pangestu – is a major energy and chemicals company, operating the country’s largest integrated petrochemical complex.

It earlier teamed up with Swiss commodities trader Glencore to make two big acquisitions in the Republic via their Singapore-based joint venture company Aster Chemicals and Energy.

In April, Aster Chemicals completed its purchase of Shell’s Energy and Chemicals Park on Pulau Bukom and Jurong Island, reportedly for US$1 billion.

In August, Aster Chemicals wrapped up its acquisition of Chevron Phillips Singapore Chemicals, which owns and operates a polyethylene manufacturing facility on Jurong Island. 

ExxonMobil has other massive operations in Singapore, including a refinery, chemical and lubricant plants and a fuel terminal.

Ms Chin said the company’s decision to sell the Esso petrol stations and move to a branded wholesale model aligns with how it markets fuels around the world.

She noted: “The sale does not impact ExxonMobil’s integrated manufacturing site in Singapore, which continues to provide fuels to our commercial customers in the region and globally.”

ExxonMobil on Oct 1 announced that it expects to cut its workforce in Singapore by 10 per cent to 15 per cent by the end of 2027 as part of global restructuring efforts, without giving an actual number. It has about 3,500 employees in Singapore, so the impending cuts could affect around 500 workers.

It also said on Oct 1 that it plans to move its Singapore office from downtown to the site of its Jurong plant by the end of 2027.