Shell is seeking buyers for its lubricants and other businesses in 21 countries in Africa as part of efforts to reduce its global downstream footprint and focus on larger markets.
There is no time frame for the sale of our African activities, Shell spokesman Rainer Winzenried told Lube Report.
Shell Oil Products Africa said it will consider appointing third-party distributors for Shell-branded lubricants in Morocco, Tunisia, Algeria and Ghana. Shell noted that its lubricants business in Egypt, and its lubricants, refining and fuels activities in South Africa are not for sale.
Early indications suggest there are a number of potential buyers interested in acquiring the businesses as going concerns, and we will now enter into a round of negotiations, with a view to securing the optimum outcome for our shareholders, customers and staff, stated Xavier leMintier, executive vice president for Shell Oil Products Africa.
Mark Williams, Royal Dutch Shells downstream director, said the review was consistent with its strategy to concentrate its global downstream footprint and follows similar reviews and divestments in other parts of the world. Shells program of downstream asset sales will continue through planned exits from 15 percent of our worldwide refining capacity and 35 percent of our current retail markets, which equates to about 5 percent of Shell-branded retails sites around the world, Williams continued.
In September 2009, Shell agreed to sell most of its downstream Greek activities, including its lubricant blending plant in Perama, to Motor Oil (Hellas) for 245.6 million (then U.S. $357.1 million), and separately sold its lubricant sales and marketing business to Petros Petropoulos.
In January, Shell outlined plans to convert its 130,000 barrels per day Montreal East refinery in Canada to a terminal to receive gasoline, diesel and aviation fuels, to be distributed via its nearby Montreal terminal. That came after specific efforts to market the facility failed to find a buyer.
Shell has also been trying to sell refineries in Stanlow, U.K and in Harburg, Germany, each of which has a base oil plant. Last November, the company said it was negotiating with a single potential buyer, Indian conglomerate Essar, and that there was no timetable on discussions. According to a March 30 Wall Street Journal report, Essar plans to make a decision on the matter by June.