Shell to Trim Refinery Portfolio
Shell (NYSE: RDS.A) reported Thursday that it has struck a deal to sell its non-operated 37.5% stake in the PCK Schwedt Refinery in Germany to Alcmene GmbH, which is a unit of the private energy holding company Liwathon Group.
Located 75 miles (120 kilometers) northeast of Berlin, the PCK refinery boasts a processing capacity of approximately 220,000 barrels per day, Shell noted in a written statement emailed to Rigzone. Other owners of the independently managed facility include Rosneft (OTCMKTS: OJSCY) (54.17%) and Eni (NYSE: E) (8.33%), noted Shell, adding that its employees “will not be materially impacted.”
According to Shell, divesting its shares in the joint venture reflect the company’s aim to shrink its global refinery footprint to core sites aligned with its trading hubs, chemical plants, and marketing businesses.
“This is yet another milestone in our journey towards a reduced refining portfolio,” remarked Shell Executive Vice President for Manufacturing Robin Mooldijk. “This sale supports the shift of Shell’s refining portfolio which includes the development of the high-value Energy and Chemicals Park Rheinland.”
Shell stated that it expects the transaction to close during the second half of this year, pending approval from the joint venture partners and regulators. The company explained that Rosneft and Eni may exercise pre-emption rights – right of first refusal – within three months of Shell and Alcmene signing their sale and purchase agreement.
In May of this year, Shell revealed plans to sell its interest in a U.S. refinery to Mexico’s national oil company.
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