New Lease On Life For Shell Refining Company

BackDec 22, 2016

Port Dickson refinery handed over to new owners as sale of Shell Refining Company completes.

Kuala Lumpur, 22 December 2016 - Shell will continue its relationship with Shell Refining Company following the sale of Shell Overseas Holdings Limited (SOHL) 51% shareholding in the Shell Refining Company (SRC) to Malaysia Hengyuan International Limited (MHIL).

SRC will remain a refinery and MHIL will invest in upgrades to meet the locally mandated Euro 4M and Euro 5 requirements. The refinery will play a vital role in Shell Malaysia's downstream supply chain and the overall security supply for Malaysia.

"This sale is in the best long term interest of Malaysia's fuel supply. MHIL is a competent and experienced refiner with the technical and financial capability to take the refinery forward and continue its operations and in so doing safeguard jobs, giving SRC a new lease of life and securing the supply of fuel products to Malaysia. All of this is intended to benefit shareholders, Negeri Sembilan, and Malaysia," said Datuk Iain Lo, SRC Chairman and Chairman of Shell Companies in Malaysia.

Shell is the leading retail fuels and lubricants provider in Malaysia, which remains an important market for the company. Shell will maintain supply to its retail and commercial customers, and will honour all current commercial arrangements through existing comprehensive supply agreements in the country.

This divestment is consistent with Shell's strategy to concentrate its global downstream operations in areas where it can be most competitive. Shell continues to have a strong business in Malaysia - including an upstream presence particularly in deepwater, the gas-to-liquid (GTL) plant, Shell Middle Distillate Synthesis (SMDS) in Bintulu, and a leading downstream presence in retail fuels and lubricants.

"Shell has a long history in Malaysia and our business has grown and adjusted accordingly. We remain confident in Malaysia as an important country to the company despite the current challenging global economic landscape as well as lower crude oil prices. We believe we still have much to contribute to the development of the nation's resources," said Lo.

ENQUIRIES:

 

Eevon Chung
Head of Media Relations & Issues Management, Shell Malaysia
Email: eevon.chung@shell.com

About Shell

 

Shell is a global leader in power, energy, and gas technology and is working to meet increasing energy demand and supply challenges by delivering smarter products and cleaner energy, infrastructure, and by developing new energy sources while addressing the impact on the environment. Malaysia is one of Shell's heartlands. The history of Royal Dutch Shell in Malaysia started more than 120 years in Miri, Sarawak. Shell currently has a strong market presence in the upstream and downstream sector in Malaysia.

Cautionary note

 

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as "joint ventures" and companies over which Shell has significant influence but neither control nor joint control are referred to as "associates". The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations;

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