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Royal Dutch Shell Sells Refinery, Other Assets To Essar For $1.3B

MARCH 29, 2011

LONDON (Dow Jones)–Royal Dutch Shell PLC (RDSA.LN) Tuesday announced it has signed a sales and purchase agreement for its 270,000 barrel-per-day Stanlow refinery in the U.K. and certain associated local marketing businesses with Essar Oil Ltd. for $1.3 billion.

MAIN FACTS:

-The proposed sale covers oil products, chemicals manufacturing and access rights to certain distribution terminal assets, plus the commercial fuels bulk fuels and local marine fuels businesses associated with the refinery.

-It does not include any of Shell’s U.K. Retail sites, the Shell higher olefins plant and alcohols units, the lubricant oils blending plant, lubricants marketing business, Shell aviation operations at airports, non-local marine business, marine lubricants, commercial road transport marketing businesses, bitumen marketing business or the Shell technology center at Thornton.

-It is expected that the transaction will be completed during the second half of 2011.

-On completion of the sale, Shell will have reduced its global refining exposure through a combination of asset sales and closures by a total of 1.6 million barrels since 2002.

-In addition to the sale of the assets, the two companies will enter into an exclusive five year crude supply contract by Shell to Essar and into long-term agreements for the supply of products in the U.K. by Essar to Shell.

-Shares at 0920 GMT down 3 pence, or 0.1%, at 2235 pence valuing the company at GBP80.35 billion.

-By Peter Evans, Dow Jones Newswires; 44-20-7842-9308; peter.evans@dowjones.com

SOURCE WSJ ARTICLE

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