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Shell (RDS.A) to Divest PCK Schwedt Refinery Stake to Alcmene

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Royal Dutch Shell’s subsidiary Shell Deutschland recently inked a deal to divest its non-operating 37.5% stake in Germany-based PCK Schwedt Refinery to Austria-based Alcmene GmbH (part of the Liwathon Group). The transaction is slated to close in the second half of this year upon fulfilling all the necessary conditions and pending approvals.

The sale is part of Shell's target to shrink its worldwide refinery footprint to key locations connected to the company's trading centers, chemical facilities and marketing operations. Robin Mooldijk, EVP of manufacturing at Shell believes that “This is yet another milestone in our journey toward a reduced refining portfolio.” He further said that this transaction contributes to Shell's refining portfolio transition, which involves the construction of the high-value Energy & Chemicals Park Rheinland.

The PCK refinery, located 120 kilometers to the northeast of Berlin, Germany, presently processes around 220,000 barrels of crude oil per day. PCK is handled autonomously. The other owners with pre-emption rights in the joint venture are Rosneft (54.17%) and Eni S.p.A. (E - Free Report) (8.33%).

Last year, management reported that five of Shell’s eleven refineries will be sold by 2025. So far it has secured buyers for its 70,000 barrel per day (bpd) worth Fredericia refinery in Denmark, besides its Puget Sound facility with 145,000 bpd capacity in Washington and 340,000-bpd Deer Park plant in Texas. On the flip side, failing to find a potential buyer for the company’s 240,000 bpd refinery in Convent, LA, the site was closed down in November.

About Shell

Shell is one of the primary oil majors, which constitutes a group of U.S. and Europe-based energy giants with global operations. The company is fully integrated as it participates in every aspect related to energy from oil production to refining and marketing.

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