Shell Reaches Agreement with Kuwait Petroleum International for the Sale of its Retail, Supply & Distribution logistics and Aviation businesses in Italy
Feb 20, 2014
Shell and Kuwait Petroleum International (KPI) announce today that their respective affiliates have reached an agreement for the sale of shares in the companies containing the Retail, Supply and Distribution logistics and Aviation businesses in Italy. The sale is subject to regulatory approval and is expected to complete in 2014.
Under the agreement Shell’s Retail network will be re-branded to Q8.
Shell’s non-service station Lubricants, Marine, Gas & Power and Upstream businesses in Italy are not impacted by the sale and will continue to operate as before. Shell will continue to operate its Lubricants business through Shell Italia Oil Products and its Gas & Power business through Shell Energy Italia. Shell Italia E&P has a material Upstream presence in the country with a strategy to grow and maximise the potential where we have an existing and growing production presence.
Italy remains an important country for Shell.
The sale is consistent with Shell’s strategy to concentrate Shell’s Downstream footprint on a smaller number of assets and markets where we can be most competitive. Recent divestment examples include the sale of refineries in the UK, Germany, France, Norway and the Czech Republic and Downstream businesses in Egypt, Spain, Greece, Finland and Sweden as well as the establishment of a Downstream joint venture across Africa.
All details of the sale are subject to commercial confidentiality.
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The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments".
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There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas;
(b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions;
(i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions;
(l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions.
All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements.
Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2012 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader.
Each forward looking statement speaks only as of the date of this announcement, 20 February 2014. Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information.
In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.