Royal Dutch Shell, Europe's largest oil company, will sell $1 billion worth of downstream assets in 14 African countries as part of the company's plan to sell $5 billion in assets this year. The assets will be sold to Vitol Group and Helios Investment Partners LLP.
Shell (RDS-A) could also include assets from five other countries in the deal. The deal includes Shell assets in Morocco, Tunisia, Ivory Coast, Egypt, Burkina Faso, Ghana, Senegal, Mali, Guinea, Cape Verde, Kenya, Uganda, Madagascar and Mauritius, but excludes the company's lubricants business in Egypt, according to Bloomberg News.
Shell could also add its businesses in Namibia, Botswana, Togo, Tanzania and La Reunion to the venture, Bloomberg reported. The Anglo-Dutch oil giant will own 20% of a newly formed entity with Vitol and Helios owning the rest. The transaction is expected to be finalized by the first half of next year.
Shell has sold $30 billion in global assets over the past five years to raise cash and to focus more on exploration and production projects. Oil and gas production projects are not included in the Shell sales.