Shell exits Argentina’s downstream sector
BUENOS AIRES, April 24, 2018 – Shell is selling its Argentine downstream assets to Brazilian subsidiary Raizen for USD 950 million, the super-major announced in a press release on Tuesday.
The deal will see Raizen take over Shell’s Dock Sud refinery and around 645 fuel retail stations in Argentina. The company will also be responsible for distribution business related to LPG, lubricants, bunker and aviation fuel, chemicals and other refined products. According to the press release, Raizen will continue using the Shell brand under a licensing agreement.
The divestment comes on the heels of a strategic review of Shell’s assets in the country, which began in August 2016.
“Our plan is to continue to thrive in the downstream Argentine market through Raizen,” Shell Downstream global director John Abbott said in the company statement. “Raizen has generated great value in Brazil and under this agreement, we will continue to be a major supplier of fuel for Argentina.”
Established in 2011, Raizen is a 50-50 joint venture between Shell and Brazilian energy and agro-products conglomerate Grupo Cosan. In Brazil, the company operates more than 6,000 Shell-branded service stations and sells around 15.7 million barrels of fuel to the local transport sector each year.