Shell has completed the sale of its 51% shareholding in the Shell Refining Company (SRC) in Malaysia to Malaysian Hengyuan International Limited (MHIL) for US$66.3m. The transaction was announced in February 2016.
SRC operates a 156,000 bbl/d (7.8 Mt/year) refinery in Port Dickson, where a 31,000 bbl/d diesel processing unit was commissioned in 2013. MHIL is a unit of Chinese private refiner Shandong Hengyuan Petrochemical Company. The company will invest in the upgrades needed to meet the Euro 4M and Euro 5 requirements.
Shell continues to have a strong business in Malaysia – including an upstream presence particularly in deepwater, the gas-to-liquid (GTL) plant, Shell Middle Distillate Synthesis (SMDS) in Bintulu, and a leading downstream presence in retail fuels and lubricants. The group will continue to supply its retail and commercial customers in Malaysia, and will honour all current commercial arrangements through existing comprehensive supply agreements in the country.
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