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SHELL TO REVIEW DOWNSTREAM BUSINESSES IN 21 COUNTRIES IN AFRICA

Source: shell.com
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JOHANNESBURG – April 1, 2010 – Shell Oil Products Africa (Shell) today announced it is reviewing ownership options for its downstream businesses in 21 countries in Africa (see notes to editors). While a number of options are being considered, the preferred outcome is the sale of most businesses in scope as going concerns, subject to successful negotiations, and any necessary regulatory and final company approvals.

Shell's fuels, lubricants and refining activities in South Africa are not affected by the review. The company's exploration and production businesses, liquefied natural gas interests and most international trading activities in Africa are also out of scope.

Commenting on the announcement, Xavier le Mintier, Executive Vice President, Shell Oil Products Africa, said: “This decision is part of our drive to refocus our global downstream footprint into fewer, larger markets. The businesses under review in Africa are profitable and professionally-run. They have strong positions in their respective markets and offer ample scope for growth to owners willing to invest in them. Early indications suggest there are a number of potential buyers interested in acquiring the businesses as going concerns and we will now enter into a round of negotiations, with a view to securing the optimum outcome for our shareholders, customers and staff.”

Adding his comments, Mark Williams, Royal Dutch Shell's Downstream Director, said: “The review is consistent with our strategy to concentrate our global downstream footprint and follows a number of similar reviews and divestments in other parts of the world.

“Shell's program of downstream asset sales will continue through planned exits from 15 percent of our world-wide refining capacity and 35 percent of our current retail markets, which equates to about 5 percent of Shell-branded retail sites around the world.”

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