ExxonMobil is in talks with Singapore firm to acquire a refining-petrochemical complex in Singapore that could boost its fuel and chemical production in Asia.
Singapore is already ExxonMobilâ€™s biggest paraxylene production base in the world at 1 million tons per year (tpy), according to its 2016 annual report.
The proposed JAC acquisition will boost ExxonMobilâ€™s paraxylene capacity to 1.8 million tpy and add another 2.5 million tpy of oil products output.
ExxonMobile spokeswoman said that they can confirm that they are currently negotiating with the receiver for Jurong Aromatics Corporation Pte Ltd to acquire JACâ€™s assets on Jurong Island. While progress is being made, no agreement has been reached yet.
The US oil company is the frontrunner to buy JAC which went into receivership in September 2015, Thomson Reuters publication Project Finance International reported on Tuesday.
Borelli Walsh appointed as the receivers and managers of JAC by lender BNP Paribas. Lotte Chemical Corp said that in March, it had dropped out of the race to buy JAC.
Costing $2.4 billion, JACâ€™s condensate splitter and petrochemical units started operations in Asia in 2014 to produce paraxylene, a raw material for textiles and bottles, to meet Chinaâ€™s demand.
Once the deal is inked, ExxonMobil could take over the purchase of condensate for JAC from July, trade sources said.
JACâ€™s debt problems mounted amid the global commodities rout and it stopped operations at the end of 2014 to fix a technical issue. The plant was restarted in July 2016 under tolling agreements with BP and Glencore.
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