Philippines: Shell Spins off LPG Business to Japanese Firm
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Monday, 03 October 2011 |
Shell has announced that it has signed a share purchase agreement with Isla Petroleum and Gas Corp., an affiliate of Itochu Corp, for Shell Gas (LPG) Philippines. The move is in line with the company’s stated strategy of limiting its downstream ventures.
“This agreement represents the outcome of the review for Shell’s LPG businesses in the Philippines and is separate to Shell’s other LPG business under review,” said a company statement. “The sale of Shell’s share in the Philippine LPG business is consistent with Shell’s strategy to concentrate its global downstream footprint into fewer, larger markets.” The deal is on course to be closed by the end of the year. The company said that its other downstream businesses, including retail fuel products, would be unaffected by the deal. Last week, Shell had identified the Philippines as a key investment area for the future. Itochu has several investments in the Phillipines, including in biomass production.
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