A group including commodity trader Glencore Plc and Indonesian chemicals business PT Chandra Asri Pacific is in advanced talks to buy Shell Plc assets in Singapore in a deal that could be worth about USD 1bn, people with knowledge of the matter said.

The parties are working on the details of a transaction that could be announced as soon as the coming weeks, according to the people, who asked not to be identified as the process is private. Shell’s Singapore assets include a refinery capable of processing 237,000 barrels of oil a day, a facility on Jurong Island that produces monoethylene glycol and an ethylene plant on Pulau Bukom.

After a spell of bumper returns, top commodity traders have been snapping up refinery assets that allow them to profit from the margins that can be captured turning crude oil into consumable fuels. Some refineries also offer more trading leverage than others, with Shell’s Bukom plant sitting at the center of a hub of global maritime trade. 

Under the terms of the potential deal being discussed, Chanda Asri would become the operator and majority owner of the assets, while Glencore would hold a non-operating minority stake, one of the people said. Other bidders remain interested in the assets and there’s no certainty the discussions will result in a deal, the people said.

Representatives for Chandra Asri and Glencore declined to comment. A representative for Shell declined to comment beyond previous statements that its priority focus is on a divestment of the Bukom and Jurong assets following a strategic review. Singapore remains an important trading and marketing hub in the region, according to the spokesperson.

Shell started a review of its energy and chemicals assets on Bukom and Jurong islands last year. The company’s Bukom facility is “by far the weakest integrated refinery-petrochemical site” in its portfolio, Wood Mackenzie analysts wrote in a September report.