Shell Reportedly Set To Exit Schwedt Refinery! Is The Energy Giant Paving Way For New Chapter In European Fuel Supply?

Shell PLC SHEL has reportedly reached an agreement to sell its share in the Schwedt refinery, a facility that plays a significant role in supplying fuel to much of eastern Germany and has become entangled in Europe's tensions with Moscow due to the conflict in Ukraine.

The ownership stakes in the refinery were left uncertain when Germany took control of it from its Russian majority owner, Rosneft PJSC, following the invasion, according to a news report by Bloomberg.

This action was taken as sanctions posed a threat to its primary source of supply, the report read.

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Shell has been attempting to divest its stake in the Schwedt refinery for several years, aligning with its strategy to shrink its worldwide refining portfolio to focus on key locations like Rheinland in Germany, the report added.

The sale of its 37.5% interest to Prax Group is anticipated to be finalized in the first half of 2024, pending regulatory approvals. The financial details of the deal were not revealed.

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Price Action: SHEL shares are trading lower by 0.87% premarket to $64.92 premarket on the last check Friday.

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SHELShell PLC

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