Shell Overseas Investments B.V., and B.V. Dordtsche Petroleum Maatschappij have entered into an agreement to sell Shell Neft LLC to PJSC LUKOIL. This LLC owns Shells Russian retail and lubricants business.
WEBWIRE – Friday, May 13, 2022
The deal includes 411 retail stations, mainly located in the Central and Northwestern regions of Russia, and the Torzhok lubricants blending plant, around 200 kilometres north-west of Moscow.
Our priority is the well-being and health of our employees, stated Huibert Vigeveno (Shells Downstream Director). Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.
The acquisition by Shell of high-quality Russian businesses fits in well with LUKOILs strategy for developing its priority sales channels including retail and lubricants, stated Maxim Donde (LUKOILs Vice President, Refined Products Sales).
The agreement with LUKOIL comes after Shell announced in March that it would withdraw from all Russian hydrocarbons in a gradual manner. It will be done in compliance with all applicable laws and regulations.
The sale of is expected to close later in the year, subject approval from regulatory authorities.
- LUKOIL is one of the largest publicly traded, vertically integrated oil and gas companies in the world in terms of proved hydrocarbon reserves and production; and the second largest producer of crude oil in Russia. Established in 1991, LUKOIL currently operates globally with core upstream assets located in Russia. The entire production cycle covers oil and gas exploration, production, refining, production of petrochemicals/lubricants, power generation, marketing and distribution.
- On March 8, 2022, Shell announced its intent to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG) in a phased manner.
- Shell Neft LLC is wholly owned by Shell Overseas Investments B.V. and B.V. Dordtsche Petroleum Maatschappij.
- Shell Nefts retail network consists of 240 sites owned by Shell, 171 sites owned by dealers (and 19 Trademark License Agreement sites which are out of the scope of this transaction with LUKOIL).
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