Mon 20 May 2013, 12:02 GMT

Total buys Shell's downstream business in Egypt


Lubricants business to be retained as part of the deal.



Oil major Shell has reached an agreement with French oil firm Total for the sale of its retail and commercial fuels activities in Egypt, Shell Marketing Egypt (SME), for an undisclosed sum.

Under the agreement, Shell’s current SME staff, except those who support the retained lubricants business, will transfer to Total.

Shell's upstream business in Egypt is not impacted by the announcement and will continue to operate as before.

"Shell maintains a material upstream presence in the country and our strategy aims to grow and maximise the hydrocarbon potential in the Western Desert, where we have an existing and growing production presence," Shell said.

Shell added: "The sale is consistent with Shell’s strategy to concentrate its downstream footprint on a smaller number of assets and markets. Recent examples include the sale of refineries in the UK and Germany and downstream businesses in Finland and Sweden as well as the establishment of joint ventures in Brazil and across much of the rest of Africa."

Until deal completion, which is not expected for several months, Shell said it will continue to carry out its normal activities.

All details of the sale are subject to commercial confidentiality, according to Shell.


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