Shell sells UK refinery to India's Essar for $1.3bln

29th March 2011, Comments 0 comments

Anglo-Dutch energy giant Royal Dutch Shell announced Tuesday that it has agreed to sell Britain's second biggest oil refinery to Indian group Essar for $1.3 billion (921 million euros).

"Shell today announced it has signed a sales and purchase agreement for its 270,000 barrel-per-day Stanlow refinery in the United Kingdom and certain associated local marketing businesses with Essar Oil (UK) Limited (Essar) for a total expected consideration of some $1.3 billion," it said in a statement.

Stanlow, which is located near Ellesmere Port, Cheshire, in northwest England, produces about one sixth of the country's petrol and employs 960 people.

The deal, which is expected to be completed in the second half of 2011, is part of Shell's ongoing drive to sell off smaller non-core assets. Essar had made a formal offer for Stanlow last month.

"The decision to sell Stanlow is part of our drive to concentrate our global manufacturing portfolio on larger assets," added Shell's Downstream Director Mark Williams in the statement.

"On completion, (this sale) means we will have reduced our global refining exposure through a combination of asset sales and closures by a total of 1.6 million barrels since 2002."

© 2011 AFP

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