Major oil manufacturer Shell has announced that it has agreed to sell sections of its downstream operations in Norway to Finnish company ST1, while also confirming a team-up with the energy business.
ST1 is set to assume control of Shell’s distribution and supply, commercial fuels and retail arms in Norway under the terms of the deal, while the Norwegian aviation arm of Shell will be run as a 50-50 partnership between Shell and ST1.
It is expected to be finalised early in 2015 and follows on from earlier downstream divestments that saw the oil giant sell refineries in France, Germany, the UK, the Czech Republic and Norway, as it looks to reduce its overheads.
Shell has become one of the world’s leading manufacturers of petrochemicals, with innovative lubricants like Shell Gadus S2 V100 3 and Shell Tellus S2 M 46, and the company will continue to have a significant presence in Norway.
The conditions of the deal with ST1 will enable Shell to maintain operations in that country using its own brand name and will not have any effect on the other businesses it has in Norway. This means its euroShell customer loyalty card programme will remain in place, while its lubricants will be available through macro distributors.
ST1 is already running Shell petrol stations in Sweden and Finland, having bought the first one four years ago for around £400 million. The Finnish firm is currently in possession of more than 600 service stations in Norway, Sweden, Poland and Finland.