Maruzen had secured the license to build and operate
the refinery from the Economic Development Board
(EDB) on the agreement that it would supply fuel oil
to the Pasir Panjang power plant located nearby.
begun serious negotiations. After some months, BP
agreed to acquire Maruzen’s Singapore businesses
as well as its debts and liabilities. The news was
greeted with relief all around as it meant that the
business could continue and most of the jobs
With no access to its own crude oil supply, the
company paid a high price for feedstock and sold
refined products at a loss. The refinery’s capacity
of about 20,000 b/d was small and uncompetitive
even by the undemanding standards of the 1960s!
Maruzen began experiencing cashflow problems
as sales plummeted, and the company ended up
owing contractors and often fell behind paying its
workers.
would be saved.
On 1 June 1964, a new company, BP Refining
Singapore Ltd, was formed. BP paid $6.9m to
acquire 100% of the shares of the refinery, which it
saw as the Company’s ‘springboard’ to enter East
Asian markets, primarily in refining and marketing
ventures. Ling witnessed the refinery’s takeover
by BP where he went on to serve with great
distinction for a total of 32 years and 9 months
before retiring in March 1997.
The writing was on the wall. In June 1964, the
company’s local managing director confided in Ling
that the head office in Japan had decided to sell off
the refinery and its business in Singapore.
"It was a blessing and relief when BP
announced it was buying over the company
and the business."
"They provided good starting salaries and
better working conditions than many local
firms and even the government at that time."
BP’s entry into Singapore in 1964 helped save
hundreds of direct jobs and thousands more
indirectly. While some of Maruzen’s staff left after
the takeover, leaving behind a contented and
grateful Singaporean workforce, BP expanded the
refinery and re-organised the business. BP also
did not experience any labour unrest nor any
political reprisals that it had feared might result
from Japan’s invasion of Southeast Asia during
the Second World War.
Ling’s initial reaction was that it was time to look for
a new job. Given that Singapore’s bleak economic
outlook and conditions, he wasn’t sure if anyone
would want to buy the loss-making refinery and its
heavily-indebted business.
But unknown to many of the local staff, BP and
Maruzen Oil had dealings in Japan and the senior
management at the companies’ respective HQs had
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