By HYUN YOUNG LEE
January 12, 2007
LONDON — Royal Dutch Shell PLC said it was considering selling off its French refining assets as part of an “ongoing strategic review” to streamline and concentrate its downstream assets.
The French assets could fetch a total of some $1.5 billion to more than $1.6 billion, analysts said.
Two people familiar with the matter said Russian oil company OAO Lukoil Holdings made an approach to Shell in early December about the French refining assets, which triggered Shell’s review.
The review will look at the 142,000 barrel-a-day Petit Couronne refinery, accounting for about 7% of France’s refining capacity; the 80,000 barrels-a-day Berre l’Étaing refinery, and Shell’s 65% stake in the 77,000 barrels-a-day Reichstett refinery. It will also include the 79,000 barrels-a-day Yabucoa petrochemicals plant in Puerto Rico.
Rob Routs, Shell’s executive director, downstream, said: “The assets we’re reviewing are important to their markets, and in fact a number of parties have approached us with an interest in purchasing them as going concerns. We’re looking closely at how these assets can generate best value for our shareholders.”
A Lukoil spokesman said the company is in principle interested in acquiring downstream assets in Europe but couldn’t comment specifically on the Shell assets.
Shell’s announcement comes amid a weakening refining environment in what is a highly cyclical business. Average quarterly global refining margins have fallen 32% from year-earlier levels. In October, Shell reported a 34% fall in third-quarter net earnings, partly on weaker refining margins but also continued Nigerian unrest and increased cost pressures.
The move to review its French refineries is a good one for Shell, according to ING analyst Jason Kenney. He said the assets in question look reasonably noncore and that disposing of them would create more flexibility, adding: “Getting rid of low-return peripheral assets is always positive.”
Write to Hyun Young Lee at [email protected]
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
