Shell Signs Sale and Purchase Agreements with Petrobras

Royal Dutch Shell plc has signed Sale and Purchase agreements with Petróleo Brasileiro S.A. (Petrobras) relating to the divestment of its Downstream businesses in Uruguay and Paraguay as well as certain assets in Colombia.

The agreements relate to all businesses in Uruguay and Paraguay and include a combined network of 223 Retail service stations as well as Commercial Fuels, Lubricants, Aviation, Marine, LPG and Supply& Distribution businesses. Shell will continue to supply selected specialist Aviation Lubricants products and Liquefied Petroleum Gas for sale in Paraguay after the sale. In addition, Shell will supply selected specialist Aviation and Marine Lubricants products to Petrobras in Uruguay as well as sell Bitumen into Uruguay.

In Colombia, the agreement with Petrobras specifically relates to the divestment of 38 retail service stations and the commercial fuels business, a lubricants blending facility in Puente Aranda and the Santa Marta base oil depot. Shell's Lubricants marketing business, Greases, Marine, Chemicals businesses and Shell Global Solutions, Shell's technical service provider, will continue to operate in Colombia and will not be impacted by this announcement. Additionally, Shell continues to explore potential opportunities in Exploration and Production in Colombia.

The businesses are being sold as going concerns with nearly all staff transferring with these businesses to Petrobras. As a result, Shell does not envisage any significant impact on employment or on the national economies arising from these transactions.

The sales are subject to the relevant regulatory approval and are expected to be completed by mid 2006.

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Royal Dutch Shell plc
Petroleo Brasileiro S/A (Petrobras)

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Posted 16/01/06

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