MOSCOW (MRC) -- Oil major Shell said it had sold parts of its Norwegian downstream business to Finnish fuel firm ST1 for an undisclosed sum, further divesting parts of its downstream activities, reported Reuters.
ST1 will take over Shell's Norwegian retail, commercial fuels and supply and distribution businesses, while Shell's aviation business in Norway will become a 50-50 joint venture with ST1.
The deal is expected to close next year, pending regulatory approval.
The sale follows Shell's downstream divestments through refinery sales in Britain, Germany, France, Norway and the Czech Republic as the oil major seeks to cut costs in a weak oil price environment.
ST1 already operates Shell-branded petrol stations in Finland and Sweden. The deal announced on Thursday includes an agreement to continue operating Shell's Norwegian assets under its brand.
As MRC informed previously, last year, Royal Dutch Shell took a final investment decision tol increase production capacity at its Singapore petrochemical plant to meet demand for specialized materials used in the automotive and furniture industries. The upgrade will increase the plant's capacity to produce polyols - industrial chemicals used to make high-quality foams - by more than 100,000 metric tpy to 360,000 tpy. The project was expected to be completed in 2014.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.