Exxon Mobil starts up new Singapore refining unit, boosts sour crude imports

By Florence Tan and Anmol Choubey

(Reuters) -Exxon Mobil Corp has started production at new facilities at its Singapore oil refinery complex to produce base stocks from residue fuel, it said on Tuesday, boosting the plant's intake of high-sulphur crude.

The technology combines processes to convert fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates, Exxon said in a statement.

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The new facilities expand its Group-II base stocks production capacity by 20,000 barrels per day, Exxon added.

Crude imports at Exxon's Singapore refinery hit an all-time high of 541,000 barrels per day in August, according to data from analytics firm Kpler since 2016, driving high-sulphur crude demand in the region.

The refinery has halted low-sulphur U.S. crude imports since April, switching to buying only high-sulphur oil, the data showed.

In August, the United Arab Emirates was the top supplier with Murban and Upper Zakum crude while Qatar was second, with al-Shaheen oil, according to the data.

The refinery also imported in August Arab Light crude from Saudi Arabia for the first time since November 2023, according to the data. Other suppliers include Oman and Iraq.

Exxon's Jurong Island crude processing capacity is 592,000 barrels per day.

The base stocks, designed for commercial vehicles and industrial applications, are used in engine oils, gear oils, marine oils, and greases.

(Reporting by Anmol Choubey in Bengaluru and Florence Tan in Singapore; Editing by Christian Schmollinger and Clarence Fernandez)

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