Royal Dutch Shell will sell the majority of its shareholdings in its downstream businesses (Retail, Commercial Fuels, Liquefied Petroleum Gas, Lubricants, Bitumen, Aviation and Marine) in 14 African countries: Morocco, Tunisia, Egypt, Cote d’Ivoire, Burkina Faso, Ghana, Senegal, Mali, Guinea, Cape Verde, Kenya, Uganda, Madagascar, and Mauritius. Shell’s downstream businesses in Namibia, Botswana, Togo, Tanzania and La Reunion are under review for potential inclusion in the deal at a later date. Shell’s fuels, lubricants and refining activities in South Africa, the company’s lubricants business in Egypt and its exploration and production businesses, liquefied natural gas interests and most international trading activities in Africa are not part the proposed deal.
Shell will retain 20% of a new joint venture, while Vitol, the world largest oil trader, and Helios Investment Partners, will acquire 80%. A second company, owned by Shell (50%) and by the two partners (50%) will be created to carry out activities in the existing lubricants blending plants in seven African countries. The overall transaction amounts to $1bn.