Mon 4 Apr 2011, 14:12 GMT

Shell to sell downstream assets in Chile


Oil major appoints service provider for Shell Marine Products in separate agreement.



Shell has announced that it has agreed to sell most of its downstream business in Chile to Quiñenco for a total consideration of some US$614 million.

Under a separate agreement, Quiñenco has also been appointed as a macro distributor to market, sell and distribute Shell branded lubricants in Chile and will become the delivery service provider for Shell Marine Products' international customers in the country.

The proposed sale, which covers all Shell's existing Retail, Commercial Fuels, Bitumen and Chemicals businesses in addition to related supply and distribution infrastructure in Chile, follows a review by Shell of its downstream businesses in the country.

In a statement Shell said the deal was "consistent with the company's strategy to concentrate its global downstream portfolio into fewer and larger markets."

"This deal is consistent with our strategy to concentrate our downstream footprint and I strongly believe it is in the best possible interests of staff, Shell shareholders and our customers," said Mark Williams, Royal Dutch Shell's Downstream Director. "Quiñenco will continue to provide the high quality Shell products that our Chilean customers have come to trust and rely on over many decades."

"Shell and Quiñenco will now concentrate on securing necessary steps for the completion of the proposed deal," Shell said.


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