Shell agrees sale of Australian downstream to Vitol

Published at 09:00AM - 21/02/14

Shell Group have announced that agreement has been made to sell all downstream Australian assets to Vitol for A$2.9 billion (US$ 2.6b / £1.6b).  The deal includes Shell’s 60 year old, 120 hectare Greelong refinery- one of Australia’s largest.  Bulk fuels, 870 retail forecourts, bitumen and part of Shell’s Australian lubricants business are also included.

The majority of Shell’s current Australian staff will continue to operate in their current capacities under Vitol’s management

The deal does not cover Shell’s Aviation fuel business or the lube oil blending and grease plants in Brisbane, which are currently planned to be converted to bulk storage and distribution facilities.

Ben van Beurden, Shell’s Chief Executive Officer, said: “Australia remains important to Shell, but we are making tough portfolio choices to improve the company’s overall competitiveness.   “Our customers will continue to benefit from the quality associated with the Shell brand and we are confident Vitol will invest in and grow the business.”

Shell’s Australia Country Chair, Andrew Smith, acknowledged the enormous contribution that Shell’s downstream employees had made to the company over the past 113 years.

Last updated on 05:10PM - 19/04/14