New Delhi: Royal Dutch Shell, the British-Dutch multinational oil and gas firm on Tuesday announced signing of an agreement to sell its downstream business in Argentina to Brazil’s Raizen for $0.95 billion.The company said in a statement the sale will include the Buenos Aires refinery, around 645 retail stations, chemicals and lubricants business as well as supply and distribution activities in the country. Also, post the completion of the transaction, the businesses acquired by Raizen will continue their relationship with Shell through various commercial agreements valuing an estimated $0.3 billion.
“We plan to continue thriving in Argentina’s downstream market through Raízen. Raízen has already delivered significant value for us in Brazil and we will remain an important fuel supplier to Argentina under this deal,” John Abbott, Shell Downstream Director said.
Raízen, a joint venture set up in 2011 between Shell and Cosan, is a biofuel producer and fuels distributor in Brazil where it manages more than 6,000 Shell service stations. The agreement is part of Shell’s $30 billion divestment programme.
The sale does not include Shell’s Upstream interests in the Vaca Muerta shale formation, the company said.