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In light of Essar’s offer, the two companies today signed an exclusivity agreement until 1st April 2011, under which break fees would be payable if either company fails to sign an asset sales agreement. Pursuing this deal is aligned with Shell’s strategy to concentrate its global manufacturing portfolio on larger and more sophisticated assets. In addition to the proposed sale of the assets, which would be expected to close by mid 2011, the two companies would enter into an exclusive five year crude supply contract by Shell to Essar and into long-term agreements for the supply of products in the UK by Essar to Shell. In 2009 Shell confirmed that it was talking to third parties about the potential sale of Stanlow Refinery and associated local marketing businesses. The offer from Essar covers Oil Products and Chemicals Manufacturing and distribution terminal assets, plus the Commercial Fuels Bulk Fuels and local Marine fuels businesses associated with the Stanlow refinery, but does not include any of Shell’s UK Retail sites, the Shell higher olefins plant and alcohols units, the lubricant oils blending plant, lubricants marketing business, Shell aviation operations at airports, non-local marine business, marine lubricants, commercial road transport marketing businesses, bitumen marketing business or Shell technology centre Thornton. In the UK, Shell has a network of more than 900 branded retail sites, and supplies and distributes oil products to a range of airport, Lubricants, Marine and Bitumen customers. The company also has upstream operations in the UK sector of the North Sea and 3 onshore gas plants. Royal Dutch Shell plc Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 90 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com Shell |
Shell receives offer for Stanlow refinery in the UK