Shell completes the sale of Shell Refining Company in Malaysia
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Shell has completed the sale of its 51% shareholding in the Shell Refining Company (Federation of Malaya) Berhad (SRC) in Malaysia, which includes the 125,000 barrel per day refinery in Port Dickson, to Malaysia Hengyuan International Limited (MHIL) for $66.3 million.
Shell is the leading retail fuels and lubricants provider in Malaysia, which remains an important market for the company. Shell will maintain supply to its retail and commercial customers, and will honour all current commercial arrangements through existing comprehensive supply agreements in the country.
This divestment is consistent with Shell’s strategy to concentrate its global downstream operations in areas where it can be most competitive.
Questions & Answers
Q.Does this sale mean Shell is leaving the Malaysian market entirely?
Does this sale mean Shell is leaving the Malaysian market entirely?
No, Shell remains the leading retail fuels and lubricants provider in Malaysia. The country is still considered an important market for the company, and it will continue to supply its retail and commercial customers.
Q.Will existing Shell retail and commercial customers in Malaysia be affected by this sale?
Will existing Shell retail and commercial customers in Malaysia be affected by this sale?
No, Shell has stated it will maintain supply to its retail and commercial customers. All current commercial arrangements will be honoured through existing comprehensive supply agreements in the country.
Q.What is the reason behind Shell's decision to sell its stake in the refining company?
What is the reason behind Shell's decision to sell its stake in the refining company?
This divestment aligns with Shell’s strategy to concentrate its global downstream operations. The company aims to focus on areas where it believes it can be most competitive internationally.
Q.How large is the refinery that Shell has sold in Port Dickson?
How large is the refinery that Shell has sold in Port Dickson?
The refinery in Port Dickson, which was part of the sale, has a processing capacity of 125,000 barrels per day. It was included in the 51% shareholding sold to Malaysia Hengyuan International Limited.
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