Royal Dutch Shell has agreed to sell its stake in eastern German refinery PCK Schwedt. The divestment is part of its strategy to reduce its global refinery footprint to core sites integrated with the company's trading hubs, chemicals plants and marketing businesses.
Shell said in a statement that it will sell its 37.5% share in the refinery for an undisclosed sum to Vienna-based Alcmene GmbH, part of the Liwathon Group, an integrated logistics and investment business headquartered in Estonia.
The deal is expected to close in the second half of 2021, pending approval by associated authorities and its partners, Russia's Rosneft and Italy's ENI.
“This is yet another milestone in our journey towards a reduced refining portfolio,” said Robin Mooldijk, Shell’s EVP for manufacturing. “This sale supports the shift of Shell’s refining portfolio which includes the development of the high-value Energy & Chemicals Park Rheinland.”
Located northeast of Berlin, the PCK refinery currently processes approximately 220,000 barrels of crude oil per day. In May, Shell announced the sales of its Anacortes, Washington, U.S. refinery as well as the controlling interest in the joint venture Deer Park, Texas, refinery. The company also sold its chemical refinery in Mobile, Alabama.
The transaction, to be executed by Shell Deutschland GmbH, would not have any impact on other interests of Shell in Germany, the statement said.
Raw materials inventories will be valued at closing, based on actual volumes and prevailing market prices, said Shell, estimating a sum of between $150-250 million.
