Raízen, a joint venture set up in 2011 between Shell and Cosan, is a leading biofuels producer and fuels distributor in Brazil, where it already manages more than 6,000 Shell service stations.

“We plan to continue thriving in Argentina’s downstream market through Raízen,” John Abbott, Shell Downstream Director, said. “Raízen has already delivered significant value for us in Brazil and we will remain an important fuel supplier to Argentina under this deal.”

Shell has been in Argentina for more than 100 years. The Shell brand will remain prominent through a licensing agreement with Raízen. Customers in Argentina will continue to enjoy access to high-quality, Shell-branded products and services.

The agreement is consistent with Shell’s strategy to simplify its portfolio through a US$30 billion divestment programme, and follows a strategic review of Shell’s Downstream business in Argentina that began in August 2016. The agreement with Raízen is the result of a competitive bidding process and the sale is expected to complete later this year. It offers the opportunity to consolidate a regional partnership between Shell and Cosan.

The sale does not include Shell’s Upstream interests in the Vaca Muerta shale formation. Shell sees substantial long-term growth potential in Argentina’s shale resources.

Notes to editors

  • Raízen is a joint venture between Shell (50%) and Cosan (50%). Raízen is the leading producer of sugar, ethanol and bioenergy in Brazil, with 26 production units and 860,000 hectares of cultivated agricultural land, a network of more than 6,000 Shell stations, 950 Shell Select convenience stores and more than 2,500 business customers. In Brazil, Raízen is present in 68 airport supply bases and in 68 fuel distribution terminals, and sells approximately 25 billion litres of fuel for the transportation, industrial and retail segments. Raízen’s current turnover is around US$24 billion per year.

 

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We may have used certain terms, such as resources, in this press release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. 

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