London, UK | – Shell Petroleum has made an exit from Denmark’s downstream sector after agreeing a sale of a business unit to a local company.
The Anglo-Dutch supermajor has offloaded Dansk Shell to Dansk Olieselskab for around $80 million, including working capital.
The sold company includes the 70,000-barrels-per-day Fredericia refinery as well as local trading and supply activities.
“The divestment is consistent with Shell’s strategy to concentrate its downstream operations on areas where it can be most competitive,” Shell said.
“The transaction includes long-term agreements for the supply of crude oil and feedstocks to the refinery, including GTL (gas-to-liquids), and for the offtake of some products from the refinery.
“Approximately 240 people who are employed by Dansk Shell will remain employed by the company as it transfers to new ownership. The sale is expected to complete in 2017, subject to regulatory approval.”