Royal Dutch Shell Plc has announced plans to sell most of its downstream operations in 21 Africa nations, cutting back further in refining and marketing.
“While a number of options are being considered, the preferred outcome is the sale of most businesses in scope as going concerns,” the company said in a statement local week.
It also hinted it would cut 2,000 more jobs by the end of next year to weather the economic slowdown which has caused fuel inventories to swell in the US and Europe.
The oil giant is also reviewing 15 percent of its refining capacity and is selling other retail assets in Latin America as well, putting a total of 35 percent of its current retail markets under review.
It agreed on March 29 to sell its New Zealand fuel-retailing assets to Infratil Limited, and the New Zealand government pension fund for $489.4 million as part of a global focus on production and exploration.
“Early indications suggest there are a number of potential buyers interested in acquiring the businesses as going concerns,” Xavier le Mintier, executive vice-president of Shell Oil Products Africa, said in the statement.
“We will now enter into a round of negotiations, with a view to security the optimum outcome for our shareholders, customers and staff,” he added. Chief Executive Officer Peter Voser disclosed that the company was targeting $1 billion in cost savings this year.
The statement issued said Shell was also reviewing its liquefied petroleum gas business in South Africa but all other downstream operations in that nation were excluded from the review.
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