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Shell has completed the sale of a 31.2 percent shareholding in Showa Shell Sekiyu K.K. to Idemitsu Kosan Co. Ltd. for a total amount of JPY159 billion (approximately US$1.4 billion). Completion follows anti-trust approval from the Japan Fair Trade Commission.

Commenting on the news, John Abbott, Shell Downstream Director, remarked: "Shell has enjoyed a long and valuable partnership with Showa Shell since the year 1900. I would like to thank CEO Tsuyoshi Kameoka, the management and the board of directors for their leadership and support, as well as those leaders who have preceded them over the last century. I wish the company success and look forward to seeing the commercial linkages and a new relationship between our two companies over the coming years."

"The sale supports Shell's strategic commitment to focus downstream activity on areas where it can be most competitive," the company said.

Shell Group refines imported crude oil at its facilities in Yokkaichi, Keihin, and Yamaguchi. Its total crude oil processing capacity is 445,000 barrels per day. Showa Shell's oil business sells fuel to ships in addition to a range of products including bitumen, gasoline, diesel, kerosene, lubricants and petrochemicals. It also has a solar business and electric power business.

Shell said that its upstream, integrated gas, chemicals and trading businesses are not impacted by the sale. "Japan remains an important LNG market for Shell," the oil major added.

Idemitsu Kosan is a leading player in the Japanese bunker market, which it dominates together with local refiners Cosmo Oil Company Ltd., Nippon Oil Corporation, Japan Energy Corporation and oil major Exxon Mobil. The company processes crude at its refineries in Hokkaido, Chiba, Aichi and Tokuyama.