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Shell completes sale of its Downstream Sales and Marketing businesses in some Pacific Islands |
| 01/11/2006 |
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With the completion of the sale of its businesses in Fiji, Western Samoa and Tonga, Royal Dutch Shell plc (Shell) today finalised the sale of its Downstream sales and marketing businesses in the following Pacific Islands:
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- Shell's businesses in Fiji, Western Samoa and Tonga have been purchased by Total France SA.
- Shell's businesses in New Caledonia, Vanuatu and French Polynesia have been purchased by Pacific Petroleum Company SA.
- Shell's business in Papua New Guinea has been purchased by InterOil Products Limited
Shell's businesses in the Cook Islands and Solomon Islands will be the subject of a future announcement. Shell's aviation business at Papua New Guinea's main airport continues and is not part of the sale to InterOil. As announced in media statements on 22 November 2005 and 11 July 2006, the sales cover Shell's Aviation, Marine, Lubricants, Commercial Fuels, Distribution and Retail businesses and include a network of over 90 retail service stations and 19 storage and distribution depots. These divestments are consistent with Shell's strategy of managing its portfolio to deliver maximum value to customers and shareholders. Shell's decision to sell these businesses was based on the following: - The businesses have a history of good cash and operational performance, however Shell is focusing its portfolio toward fewer, larger scale businesses, and
- The businesses are of higher value to the purchasing companies, which have differing management priorities and capital focus.
The businesses have been sold as going concerns. Where appropriate, Shell has negotiated a bulk fuels supply agreement with the purchasing company for supply of Shell high quality fuels for up to five years following the sale. In New Caledonia, Vanuatu and French Polynesia, Pacific Petroleum Company SA will continue to use the Shell brand under a Trade Mark Licence Agreement at selected retail service stations and will continue to sell Shell branded lubricants, thereby maintaining awareness of the Shell brand in the region.
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