Royal Dutch Shell has signed an agreement to sell its Denmark-based downstream business Dansk Shell to Dansk Olieselskab for $80m.
The move is part of the company’s strategy to concentrate downstream operations on areas where it can be competitive.
The divestment follows Shell’s sale of its marketing business to Couche-Tard in May, and completes its exit from downstream activities in Denmark.
Through a licence agreement, the marketing business is operated by Couche-Tard under the Shell brand.
Dansk Shell business comprises the Fredericia refinery, as well as local trading and supply activities.
Shell’s transaction includes long-term agreements for the supply of crude oil and feedstocks to the refinery, including GTL, in addition to the offtake of some products from the refinery.
Shell communications director Jesper Brieghel said: "We have just celebrated the refinery's 50th anniversary with our neighbours in Fredericia and are pleased with this agreement to have secured a strong foundation for the refinery continued operations.”
"Shell's global strategy is to concentrate these types of business in the major growth markets where our business model is most competitive.
"More than 200 gas stations across Denmark still operate as Shell stations, but under the new ownership.”
The sale, which is subject to regulatory approval and expected to complete in 2017, will not affect Shell's upstream interests in Denmark.
Image: Dansk Shell comprises the Fredericia refinery and local trading and supply activities. Photo: courtesy of Royal Dutch Shell.
