Shell CAPSA (Shell), a subsidiary of Royal Dutch Shell plc, has completed the sale of its downstream business in Argentina to Raízen for US$916 million in cash, subject to final price adjustments.
The sale includes the Buenos Aires Refinery, around 665 retail stations, LPG, marine fuels, aviation fuels, bitumen, chemicals and lubricants businesses, as well as supply and distribution activities in the country.
In addition, the companies acquired by Raízen will continue the relationships with Shell through various commercial agreements. Completion of the sale follows an agreement announced in April 2018.
Raízen, a joint venture set up in 2011 between Shell and Cosan, is a biofuels producer and fuels distributor in Brazil, where it already manages around 6400 Shell service stations.
The sale is consistent with Shell’s strategy to simplify its portfolio through a US$30 billion divestment programme. It does not include Shell’s upstream interests in the Vaca Muerta shale formation. Shell sees substantial long-term growth potential in Argentina’s shale resources.