Shell is considering selling its retail fuel business in Africa

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Shell considers selling its retail fuel business in Africa Update date: 04-02-2010, China Chemical News According to reports from foreign media on April 2, Royal Dutch Shell PLC announced that it plans to sell its retail fuel business in 21 African countries. According to an analyst, the value of these assets could range from $1.2 billion to $1.5 billion. Shell is striving to exit low-margin businesses in order to focus its capital on large-scale projects, thereby increasing long-term oil and gas production. The aforementioned plan is the company’s latest move in this direction. Shell said that its exploration and production operations in Africa, its interests in liquefied natural gas projects, and most of its international trading activities are also not part of the sale evaluation. Peter Hutton, an analyst at NCB Stockbrokers, said that based on recent earnings and the typical premium associated with such transactions, the total value of these businesses could range between $1.2 billion and $1.5 billion. The fuel, lubricants, liquefied gas, and asphalt distribution businesses located in Morocco, Algeria, Tunisia, Egypt, Côte d’Ivoire, Burkina Faso, Ghana, Togo, Senegal, Mali, Guinea, Cape Verde, Kenya, Uganda, Tanzania, Botswana, Namibia, Madagascar, Mauritius, and Réunion are up for sale. Shell said that its LPG distribution business in South Africa is also under consideration, but it will not sell its other businesses there.