19th Feb 2014 10:49
LONDON (Alliance News) - Royal Dutch Shell PLC has chosen a USD2.4 billion offer from oil trader Vitol Group as its preferred bid for its downstream Australian assets, The Australian reported Wednesday, citing a person familiar with the offer.
The Australian said that the oil and gas giant has not granted exclusivity on the sale, contrary to other media reports, but that Vitol's consortium, which includes the Abu Dhabi Investment Council, is preferred over a rival bid from Macquarie Group Ltd and Glencore Xstrata.
The downstream asset sale includes petrol stations and its Geelong refinery, a major hydrocarbon processing site in Victoria.
The Australian, citing a person familiar with the matter, said a decision is likely to be made by the end of the month.
Shell declined to comment on the possible sale of downstream assets in Australia.
The Anglo-Dutch major recently embarked on a USD15 billion asset sale over the next two years under new Chief Executive Officer Ben van Beuren, after it reported a slide in profits for 2013.
The company has said one of the key parts of its redevelopment plan is the sale of downstream assets, so that it can focus on its exploration, development and production.
In January, Shell announced that it has agreed to sell its interests in the Australian Wheatstone projects for USD1.14 billion, and it also re-sold a 23% stake in its Parque das Conchas project offshore Brazil for USD1 billion, the same price it acquired the stake in December.
Additionally, earlier this month Shell announced the sale of three assets in the North Sea, the Anasuria, Nelson and Sean assets.
Shell shares were up 0.9% to 2,186.00 pence, putting it in the top FTSE100 movers Wednesday.
http://www.theaustralian.com.au/business/latest/shell-sells-aust-downstream-assets-for-24bn-report/story-e6frg90f-1226831758044
By Tom McIvor; [email protected]; @TomMcIvor1
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