Shell Markets (Middle East), a subsidiary of Shell, has divested its oil terminal, located in the Jebel Ali Free Zone (JAFZA) area of Dubai, to UAE-based energy logistics company Tristar Group.
Tristar Group has taken full ownership of the Shell oil products storage terminal. The financial terms of the deal have not been disclosed.
Shell Asia Pacific and China customer operations general manager Azmat Jafri said: “While this agreement enables us to focus on our core operations and products, it also allows us to continue to provide our customers high quality bitumen and lubricants products and services. It reflects our commitment to United Arab Emirates (UAE) and our customers.”
As per the sales and services agreements, Shell will continue to use the terminal to supply bitumen and lubricants products and provide services to its customers.
Tristar Group CEO Eugene Mayne said: “This agreement between Shell and Tristar is a testament to both our companies’ single-minded focus on our respective customers, and our shared vision to support the UAE to reinforce its role as a global logistics hub.”
Mayne said the strategic asset would expand the firm’s presence in JAFZA.
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It is also expected to boost the company’s capacity to better serve customers while offering a fully integrated distribution service, including storage and distribution of bulk bitumen and lubricants.
In 2018, Tristar Group acquired a Shell Chemicals terminal situated on a 21,000km² water lot in JAFZA for an undisclosed sum.
The Shell Chemicals terminal comprises nine above-the-ground storage tanks and a jetty with three pipeline connections to the tanks, a drumming facility, and a truck loading gantry.