The FINANCIAL -- The sale includes the Buenos Aires Refinery, around 665 retail stations, liquefied petroleum gas, 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 leading biofuels producer and fuels distributor in Brazil, where it already manages around 6,400 Shell service stations.
This sale offers the opportunity to consolidate a regional partnership between Shell and Cosan, and allows Shell to continue to benefit from Argentina’s growing downstream market. The Shell brand will remain prominent in Argentina through a licensing agreement with Raízen, meaning customers will continue to have access to high-quality, Shell-branded products and services.
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.