Shell sells Denmark refining business

Shell has reached an agreement with Dansk Olieselskab ApS for the sale of A/S Dansk Shell in Denmark for $80 million.

A/S Dansk Shell consists of the 70 thousand barrels per day Fredericia refinery and local trading and supply activities.

The transaction includes long-term agreements for the supply of crude oil and feedstocks to the refinery, including GTL, and for the offtake of some products from the refinery.

The divestment is consistent with Shell’s strategy to concentrate its downstream operations on areas where it can be most competitive. It follows the sale of Shell’s marketing business to Couche-Tard in May 2016, and completes Shell’s exit from downstream activities in Denmark.

The sale is expected to complete in 2017, subject to regulatory approval.