Royal Dutch Shell to sell some Norwegian downstream business to Finnish fuel firm ST1
18 Dec 2014
Royal Dutch Shell Plc today announced that it will sell some of its Norwegian downstream business to Finnish fuel firm ST1 for an undisclosed sum, as part of its plan to divest parts of its downstream portfolio.
Shell will sell its retail, commercial fuels and supply and distribution logistics businesses in Norway to ST1, while Shell's aviation business in Norway will become a 50-50 joint venture with ST1.
The sale is subject to regulatory approval and is expected to be completed in 2015.
The transaction includes a Retail Brand Licence Agreement, which will retain Shell's brand in Norway, and Shell fuels and lubricants products, and the euroShell loyalty card scheme, will continue to be available to customers in the country.
The Netherlands-based oil giant said that the deal will have no impact on its other businesses in Norway - Shell Energy Europe, Gasnor and Upstream, and Shell lubricants will continue to be sold via a macro distributor.
Shell, Europe's largest oil company said that the sale is consistent with its strategy to concentrate its downstream business on a smaller number of assets and markets where it can be competitive.
The company recently sold refineries in the UK, Germany, France, Norway and the Czech Republic, and downstream businesses in Australia and Italy.
Helsinki-based St1 Holding is a leading producer and seller of CO2-aware energy with six bio-ethanol plants in Finland; an oil refinery in Gothenburg, Sweden; and around 650 petrol stations in Finland, Sweden and Norway.