Asia/Pacific News
Shell Sells Australian Downstream Assets for $2.6B
Royal Dutch Shell (Shell) has agreed to sell Australian downstream assets, including bulk fuels, bitumen, chemicals, and lubricants assets, 870 retail businesses, and its Geelong Refinery, to the Vitol Group for $2.6 billion, the company said in an emailed statement.
The deal does not include Shell's aviation business, its Brisbane lube oil blending and grease plants, or any of its upstream businesses.
"Australia remains important to Shell, but we are making tough portfolio choices to improve the company's overall competitiveness, said CEO Ben van Beurden.
"Our customers will continue to benefit from the quality associated with the Shell brand and we are confident Vitol will invest in and grow the business."
The service stations involved in the deal will continue to use the Shell brand and provide the company's fuel and lubricants.
"This is an exciting acquisition for us, a good company led by an experienced management team and underpinned by the value of the Shell brand," said Vitol President and CEO Ian Taylor.
"Australia is a growing economy and we look forward to working with the management team to strengthen and grow the business."
Shell has made other recent downstream divestments, including the sale of refineries in the UK, Germany, France, Norway, and the Czech Republic and downstream businesses in Egypt, Spain, Greece, Finland, and Sweden.
The company also announced last week that it has reached an agreement for the sale of some downstream assets in Italy.
Shell, which has been increasing its focus on upstream and natural gas assets, completed the $3.8 billion acquisition of a liquefied natural gas (LNG) portfolio from Repsol SA last month.
