Shell to sell most African downstream business for $1 billion
21 Feb 2011
Royal Dutch Shell PLC today agreed to sell most of its African downstream business to Swiss group Vitol and Africa-based private investment firm Helios Investment Partners for £620 million ($1 billion) as part of a strategic refocusing of its business activities by Europe's largest oil company.
The deal covers existing Shell downstream businesses, retail, commercial fuels, liquefied petroleum gas, lubricants, bitumen, aviation and marine in Morocco, Tunisia, Egypt (excluding lubricants), Cote d'Ivoire, Burkina Faso, Ghana, Senegal, Mali, Guinea, Cape Verde, Kenya, Uganda, Madagascar and Mauritius.
Shell's downstream businesses in Namibia, Botswana, Togo, Tanzania and La Reunion are under review for potential inclusion in the deal at a later date.
Shell said that it's fuels, lubricants and refining activities in South Africa, the company's lubricants business in Egypt and its exploration and production businesses, liquefied natural gas interests and most international trading activities in Africa are not part the proposed deal.
Under the proposed transaction, the Hague, Netherlands-based Shell will create two new joint ventures, where one joint venture will own and operate Shell's existing oil products, distribution and retailing businesses in 14 African countries, with the potential to add five more in future.
Vitol and Helios will hold 80 per cent of the venture and Shell will hold the remaining 20 per cent.
