Two of the world’s biggest commodity traders, Vitol and Glencore, are gearing up to compete for Chevron’s 50% stake in the Singapore Refining Company (SRC), a deal that could be worth around $1 billion.

Chevron is preparing to call for final binding bids next month as part of its broader plan to streamline operations and focus investment on higher-growth assets. The U.S. supermajor has been rebalancing its portfolio in Asia, moving heavy into petrochemicals and upgrading projects in countries like South Korea, while scaling back big spending in Singapore to secure stronger returns on capital.

The Singapore Refining Company, which operates the nation’s second-largest refinery, has a crude processing capacity of 145,000 barrels per day. Its output includes LPG, gasoline, jet fuel, diesel, fuel oil, and asphalt. Recent upgrades have also enabled the plant to produce higher-grade gasoline that meets tighter environmental standards, boosting its value in the regional market.

Industry insiders say Chevron’s half of the refinery could attract aggressive bids from Vitol and Glencore, both of which have been expanding their refining and trading presence across Asia. For years, major oil companies have been offloading downstream assets to cut costs and refocus on upstream production, while trading houses have stepped in to snap up those facilities and strengthen their global supply chains.

The SRC sale highlights that trend, setting the stage for Vitol and Glencore—two giants in the trading world—to go head-to-head for one of Asia’s most strategic refining assets.