Swiss group takes over Shell
Jul 22, 2010
A consortium led by a Swiss-based firm, Vitol Group and Elios, has taken over Royal Dutch Shell’s interests in sub-Saharan Africa, including Uganda.
By Ibrahim Kasita
A consortium led by a Swiss-based firm, Vitol Group and Elios, has taken over Royal Dutch Shell’s interests in sub-Saharan Africa, including Uganda.
Royal Dutch Shell is the parent company of Shell Uganda.
Vitol paid between $1.2b and $1.5b to become the majority shareholder in the distribution and marketing sections of the giant oil company.
Shell announced last year it would off-load its retail operations in Africa.
Sources told The New Vision the deal covers Shell’s retail, commercial fuels, bitumen and chemical businesses.
It also covers the supply and distribution of oil, the liquified petroleum gas business as well as a lubricants oil.
Ivan Kyayonka, the managing director of Shell Uganda, confirmed that a partner has been “identified†but declined to give details pending an official communication from the firm’s Africa headquarters in Johannesburg.
Vitol Group, founded in 1966 and headquartered in the Swiss capital, Geneva, is a privately-owned firm with core businesses in energy, particularly crude oil.
It develops oil and gas terminals and pipelines and offers refining services.
It also provides financing, insurance, re-insurance and shipping services.
Sources clarified that the new operators will continue using the Shell brand in the 21-country African market, including Uganda.
Shell remains a minority shareholder.
This is not the first time Shell is selling its African assets. In 2008, the firm sold its interests in 15 African countries.
However, it still holds onto its most lucrative activities, exploration and production.
The take-over of Shell’s Africa operations by Vitol brings to an end a tough bidding rivalry among oil companies such as Oilibya, Morocco Oils, Tamoil and Engen Petroleum that were contesting for the ownership of the lucrative oil business.
It also means that the Vitol Group will join Total as the other big global brand in the petroleum retail business.
Shell had positioned itself in the market Ugandan with earlier acquisitions of Agip and BP, but seems to be reeling from growing competition from local and Asian firms.
The sell of the African business comes barely a month after Royal Dutch Shell sold similar operations in Greece at $300m.
Last year, the firm also sold some $1.2b of non-core downstream assets, bringing the five-year total to $11b.
A consortium led by a Swiss-based firm, Vitol Group and Elios, has taken over Royal Dutch Shell’s interests in sub-Saharan Africa, including Uganda.
Royal Dutch Shell is the parent company of Shell Uganda.
Vitol paid between $1.2b and $1.5b to become the majority shareholder in the distribution and marketing sections of the giant oil company.
Shell announced last year it would off-load its retail operations in Africa.
Sources told The New Vision the deal covers Shell’s retail, commercial fuels, bitumen and chemical businesses.
It also covers the supply and distribution of oil, the liquified petroleum gas business as well as a lubricants oil.
Ivan Kyayonka, the managing director of Shell Uganda, confirmed that a partner has been “identified†but declined to give details pending an official communication from the firm’s Africa headquarters in Johannesburg.
Vitol Group, founded in 1966 and headquartered in the Swiss capital, Geneva, is a privately-owned firm with core businesses in energy, particularly crude oil.
It develops oil and gas terminals and pipelines and offers refining services.
It also provides financing, insurance, re-insurance and shipping services.
Sources clarified that the new operators will continue using the Shell brand in the 21-country African market, including Uganda.
Shell remains a minority shareholder.
This is not the first time Shell is selling its African assets. In 2008, the firm sold its interests in 15 African countries.
However, it still holds onto its most lucrative activities, exploration and production.
The take-over of Shell’s Africa operations by Vitol brings to an end a tough bidding rivalry among oil companies such as Oilibya, Morocco Oils, Tamoil and Engen Petroleum that were contesting for the ownership of the lucrative oil business.
It also means that the Vitol Group will join Total as the other big global brand in the petroleum retail business.
Shell had positioned itself in the market Ugandan with earlier acquisitions of Agip and BP, but seems to be reeling from growing competition from local and Asian firms.
The sell of the African business comes barely a month after Royal Dutch Shell sold similar operations in Greece at $300m.
Last year, the firm also sold some $1.2b of non-core downstream assets, bringing the five-year total to $11b.