Anglo-Dutch energy giant Shell said today that it agreed to sell most of its African downstream activities to Swiss group Vitol and Africa-based Helios Investment Partners for $1 billion.
The energy giant, which is seeking to sell non-core assets, said in a statement that it would create two new joint ventures under the proposed deal.
'Shell today announced it has agreed to divest the majority of its shareholding in most of its downstream businesses in Africa to Vitol and Helios Investment Partners for a total consideration of some $1 billion,' it said.
'One joint venture will own and operate Shell's existing oil products, distribution and retailing businesses in 14 African countries, with the potential to add five more in future,' it added. Vitol and Helios will hold 80% of the venture and Shell will hold the remaining 20%.
A separate company will then own and operate Shell's existing lubricants blending plants in seven countries. This will be 50% owned by Shell and 50% by Vitol and Helios.
BP's $7 billion India deal
BP is making one of the biggest foreign direct investments in India to date with a $7.2 billion tie-up with Reliance Industries to explore for deepwater oil and gas.
This marks the second major deal under BP's new chief executive Bob Dudley, who last month agreed a share swap with Russia's state-controlled Rosneft to jointly explore for offshore oil and gas in the Arctic.
BP said it would pay Reliance Industries $7.2 billion and performance payments of up to $1.8 billion if the tie-up leads to the development of commercial discoveries.
'This partnership combines the skills of both companies and will be focused on finding more hydrocarbons in the deep water blocks of India,' said Mukesh Ambani, chairman and managing director of Reliance Industries.
BP is recovering from last year's disastrous Gulf of Mexico spill which cost it billions of dollars and former CEO Tony Hayward his job.
