Shell to sell two French refineries and Norwegian assets stake

03 August 2007

Mumbai: Shell International Petroleum Company Limited (Shell) has signed a letter of intent with Petroplus Holdings AG for a possible sale of two of its French refineries.

Shell will also sell its stake in the Skarv and Idun underdeveloped fields located in the Norwegian Sea as part of planned restructuring.

Shell and Petroplus will discuss detailed terms of an agreement, including developing and processing arrangement for speciality products such as lubricants. The two expect to seal a potential sale during 2008.

The sale, part of an ongoing strategic review of a number of Shell''s refining and petrochemical assets, would include the Petit Couronne and Reichstett Vendenheim refineries and associated infrastructure and businesses. The two refineries have a combined capacity of 220,000 barrels per day.

Shell said a purchase price of $875 million, including working capital of approximately $400 million, has been agreed upon.

The company will continue its retail, commercial road transport, lubricants (including marine lubricants), LPG, aviation and bitumen business in France.