Shell reviewing portfolio of LPG businesses
06/05/2010
Shell today announced it is in discussions with third parties as part of a review of ownership options for most of the company’s liquefied petroleum gas (LPG) businesses (see notes to editors). The preferred outcome of the review is the sale of the Shell Gas (LPG) businesses in scope as going concerns, through a number of phased portfolio actions.
This review is consistent with Shell’s strategy to concentrate its global Downstream footprint on a smaller number of assets and markets. In addition to today’s announcement, Shell has recently announced Downstream reviews in Finland, Sweden and Africa, proposed sales in Germany and the United Kingdom, and completed sales in France and New Zealand.
Shell completed the sale of its LPG business in India in April 2010 and has confirmed its intention to sell its major shareholding in the Pakistan LPG business.
Commenting on today’s announcement, Tan Chong Meng, Shell’s Executive Vice President for B2B/Lubricants, said: “We believe this review provides attractive opportunities for investors to acquire cost-efficient and professional LPG marketing, supply and distribution businesses. These businesses have strong positions in their respective markets and offer scope for growth to owners willing to invest in them. We are already gauging potential interest among third parties in some markets and intend to assess buyer interest in other markets at the earliest opportunity.”
Mark Williams, Shell’s Downstream Director, added: “This review is consistent with our strategy to concentrate Shell’s global downstream footprint and follows a number of similar reviews and divestments around the world. We will continue with our programme of asset sales which includes planned exits from 15 percent of our worldwide refining capacity and 35 percent of our current retail markets.”
Notes to editors
The scope of the review is the Shell Gas (LPG) businesses in France, Belgium, Netherlands, Luxembourg, Denmark, Finland, Sweden, Norway, Hungary, Poland, United Kingdom, Malaysia, Pakistan, Sri Lanka, Philippines, Singapore and Argentina. The Shell Gas (LPG) businesses in Canada, Turkey, Brunei, Vietnam, Hong Kong and Macau are out of scope.
The Shell Gas (LPG) businesses in Sweden and Finland are also in the scope of reviews of Shell’s Downstream businesses in these countries.
The Shell Gas (LPG) businesses in Morocco, Tunisia, South Africa and Botswana are part of Shell Oil Products Africa and are in the scope of a review of Shell’s Downstream businesses in 21 countries in Africa.
Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 100 countries with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects including wind and solar power. For further information, visit www.shell.com
