Shell has signed agreements with Vitol Group and Helios Investment Partners to divest its majority stakes in its African downstream businesses for $1bn.
Shell will continue to hold equity in two new joint venture firms that will be formed as a result of these agreements.
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One joint venture firm will own and operate Shell’s oil products, distribution and retailing businesses in 14 African countries, in which Vitol and Helios will hold an 80% stake with Shell the remaining 20%.
The second joint venture firm, which will be 50% owned by Shell and 50% by Vitol and Helios, will own Shell’s lubricants blending units in seven African countries.
The deal is expected to be completed in a phased manner during 2011 and the first half of 2012.
Royal Dutch Shell’s downstream director Mark Williams said the company will reduce its capital exposure through this deal in line with its strategy to focus on its global downstream business.
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By GlobalData
