Shell to sell its German refinery stake
Royal Dutch Shell agreed to sell its stake in eastern German refinery PCK Schwedt, the latest in a string of refinery disposals as part of the Anglo-Dutch company's energy transition strategy.
Shell said in a statement that it will sell its 37.5% share in the refinery for an undisclosed sum to Vienna-based Alcmene GmbH, part of the Liwathon Group, an integrated logistics and investment business headquartered in Estonia.
The deal is expected to close in the second half of 2021, pending approval by cartel authorities and its partners, Russia's Rosneft and Italy's ENI.
The disposal is part of Shell's strategy to reduce its global refinery portfolio to those core locations that could be integrated into future centres of Shell's operations, as it aims to reduce carbon emissions to net zero by 2050 at the latest.
"This sale supports the shift of Shell's refining portfolio which includes the development of the high-value Energy & Chemicals Park Rheinland," said Robin Mooldijk, Executive Vice President for Manufacturing at Shell.
In May, Shell announced the sales of its Anacortes, Washington, U.S. refinery as well as the controlling interest in the joint venture Deer Park, Texas, refinery. The company also sold its chemical refinery in Mobile, Alabama.
It also plans to halve the capacity at its Pulau Bukom oil refinery in Singapore.
The transaction, to be executed by Shell Deutschland GmbH, would not have any impact on other interests of Shell in Germany, the statement said.
It would not have a significant effect on Shell employees as Schwedt was a non-operated venture.
Raw materials inventories will be valued at closing, based on actual volumes and prevailing market prices, said Shell, estimating a sum of between $150-250 million.
Rosneft holds 54.17% and ENI 8.33% in PCK (Petrolchemisches Kombinat) Schwedt, which lies some 120 kilometres (km) northeast of Berlin. It currently processes 220,000 barrels of oil a day, Shell said.
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