Shell divests retail units in Pacific islands

Royal Dutch Shell P.L.C. has sold its marketing businesses in the Pacific islands subject to regulatory approvals. The agreements relate to Shell’s aviation, marine, lubricants, commercial fuels, distribution and retail businesses and include a network of 65 retail service stations and 12 storage and distribution depots. The terms of the transactions are confidential and the sales are expected to be completed in coming months. The units in Fiji and Tonga have been sold to Frances Total SA while the units in New Caledonia, Vanuatu and French Polynesia have been sold to Albert Moux and Partners. Shell has negotiated agreements to supply bulk fuel to each purchasing company for up to five years following the sale. In New Caledonia, Vanuatu and French Polynesia, the Albert Moux & Partners consortium will continue to use the Shell brand under a license agreement at selected retail service stations and will continue to sell Shell-branded lubricants. The sale of the Pacific operations follows Shell’s divestment in November 2005 of its downstream business in Papua New Guinea to Toronto-based InterOil,which operates PNG’s sole oil refinery, near Port Moresby. Units in the Cook Islands and Solomon Islands will be subject to further announcements. (July 11, 2006)