Denmark, Sept., 16, 2016- Shell has reached an agreement with Dansk Olieselskab ApS for the sale of A/S Dansk Shell in Denmark, which consists of the 70 thousand barrels per day Fredericia refinery and local trading and supply activities, for approximately $80 million including working capital.
SHELL OKAYS SALES OF DENMARK REFINING BUSINESS FOR $80 MILLION
According to Shell, the transaction includes long-term agreements for the supply of crude oil and feed stocks to the refinery, including GTL, and for the off take of some products from the refinery.
Shell however said the sale will not affect staff.
“Approximately 240 people who are employed by A/S Dansk Shell will remain employed by the company as it transfers to new ownership. The sale is expected to complete in 2017, subject to regulatory approval”, Shell said in a statement.
The divestment, it added is consistent with Shell’s strategy to concentrate its downstream operations on areas where it can be most competitive.
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This is coming after the sale of Shell’s marketing business to Couche-Tard in May 2016, and the development completes Shell’s exit from downstream activities in Denmark.
Couche-Tard operates the marketing business under the Shell brand through a Trademark Licence Agreement.
“Shell’s upstream interests in Denmark are not impacted by this transaction”, it said.
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