Exit Stage East: How Western Majors Are Ceding Southeast Asia's Downstream Sector

A major reshaping of Southeast Asia’s downstream oil and gas market is under way as Western oil majors accelerate their withdrawal from the Southeast Asia region. These transactions are significantly altering the competitive landscape, with the need to redeploy capital driving this defining trend in Southeast Asian downstream M&A.

For example, Shell, Chevron, and others have completed a series of significant downstream divestments across the region. Recent key transactions include Shell Singapore’s sale of its Bukom refinery in Singapore – one of the world’s largest oil refining and trading centres, to CAPGC Pte. Ltd., a joint venture between Glencore, the global commodities trader and Indonesian-based chemicals firm Chandra Asri. The transaction reflected Shell’s intent to exit assets that no longer aligned with its long-term strategic direction, whilst Glencore sought to expand its physical trading and distribution footprint across key Asia-Pacific markets.