Shell has announced that it will sell its 51% stake in the Shell Refining Company (SRC) in Malaysia to Malaysian Hengyuan International Limited (MHIL) for US$66.3 million (RM277.3 million), subject to regulatory approval. The transaction values SRC at RM551 million, or RM1.80 a share, which is below market value.
A statement from the oil major said that it is MHIL’s intention for SRC to invest in the upgrades needed to meet the Euro 4M and Euro 5 requirements. MHIL is a unit of private Chinese refiner Shandong Hengyuan Petrochemical Company.
Shell Malaysia Trading said that it will ensure security of supply to its retail and commercial customers in Malaysia and honour other existing commitments through an existing comprehensive supply strategy that includes a long term offtake from SRC.
Reuters reports that Shell’s oil refinery at Port Dickson has a capacity of 156,000 barrels-per-day with 90% of its oil products consumed within Malaysia. Shell has been exploring options for SRC including the sale of the Port Dickson refinery or converting it to a storage terminal since at least January 2015, it added.
The Malaysian sale is consistent with Shell’s strategy to concentrate its global downstream footprint and businesses where it can be most competitive. “Malaysia continues to be an important country for Shell. Shell is the leading retail fuels and lubricants provider and continues to invest in growing these businesses in the country,” it added.
A sharp drop in oil prices has seen Shell selling assets and cutting cost and jobs to weather the storm. It recently sold downstream businesses in Australia and Italy; a number of retail sites in the UK; and conducted an IPO for Shell Midstream Partners L.P. Shell has also agreed to the sale of its marketing business in Denmark and Norway, its LPG business in France and a 33.24% stake in Showa Shell Sekiyu KK.
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Congratulations finally a single monopoly AP has been STOP… hope the new management will bring in EURO5 or 6 higher into the market !!!
What single monopoly has been stopped?
It will move towards a monopoly. With Petronas “forcing” out other players. Look at how BP is out, then followed by ExxonMobil and slowly Shell. Of course this is the downstream refining business but it will be matter of time before Shell is completely out.
Then it will be full monopoly. You will then pay MYR4.90 per litre RON88 when global oil price is USD 25 per barrel.
No it is not a typo. No more RON95 and RON97 for you and me. Monopoly already that time. RON88. Take it or leave it.
Tired to example for simple minded person like you, go do research WHY AP system monopolies Malaysia industry. Please read “the real history” and not “AP fantasy story telling”.
I wonder when would Proton be sold to China? The government and cronies are best at selling things.
Dutch sells to Chinese in Malaysia. Business as usual.
owh, i tought SRC was the ‘other SRC’…
Look at the real owners behind Shell and you’ll know why they sell to another Chinese company
Care to elaborate?
dont u read last para? shell oso selling its business in other country. So who is the owner?
Hmmm, let’s see who can come up with the most outrageous idea on how to politicize this business deal.
They will say this SRC is related with Najib SRC cuz is same-same mah. Somemore they sell at way below market value, super conspiracy suspicious.
Ini mesti Najib force the Dutch shareholders to sell at that price otherwise, he asking big bro Putin to do another MH17 again. Then he go to China and gip them chance to buy this refinery at the super low price as long as they forgip him for MH371. of course China will gip him 2.6 Billion yuan as finders fee.
Why dont you start?
Hope they can faster output Euro 5 Diesel
damn SRC, the name seems to bring lots of luck these days :p
Sports Recreation Committee?
That’s the beautiful thing about money. It has no race or religion. I sell, you pay.
I wonder why SRC didn’t buy SRC since it is only USD66Mil…spare change what. Then can open minyak 1malaya!