Shell on Friday (Dec 15) said it has agreed to sell its 37.5 per cent stake in the PCK Schwedt oil refinery, which supplies most of Berlin’s fuel, to Britain’s Prax Group.

Shell had restarted efforts to sell the stake earlier this year after the German government put the local units of Rosneft, the refinery’s majority owner, under trusteeship in the wake of Moscow’s invasion of Ukraine.

Shell said it expects the deal to close in the first half of 2024, pending regulatory clearance and pre-emption rights by Rosneft and Italy’s Eni, which own 54.17 per cent and 8.33 per cent in PCK Schwedt, respectively.

No financial details were disclosed.

“This is another important milestone towards a more focused refining portfolio and the development of high-value integrated sites, such as the Energy & Chemicals Park Rheinland,” said Machteld de Haan, Shell’s executive vice president for chemicals and products.

Shell said the planned divestment was part of the oil major’s efforts to reduce its global network of refineries to core sites that are integrated with its trading hubs and chemicals activities. REUTERS

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