PCK oil refinery : Shell to divest stake in German refinery to Alcmene

Royal Dutch Shell said that its subsidiary – Shell Deutschland will divest its 37.5% non-operated stake in the PCK oil refinery in Schwedt, Germany (PCK Raffinerie GmbH) to Austria-based Alcmene GmbH, a part of the Liwathon Group.

The energy giant did not disclose the financial terms of the transaction.

Alcmene is into trading of energy and commodities trading, while Liwathon Group is an Estonia-based energy holding company.

Shell said that the stake sale in PCK oil refinery aligns with its strategy to decrease its refinery footprint across the globe. The energy giant added that it intends to have only core sites that are integrated with its trading hubs, chemicals factories, and marketing businesses.

Robin Mooldijk – Shell EVP for Manufacturing said: “This is yet another milestone in our journey towards a reduced refining portfolio.

“This sale supports the shift of Shell’s refining portfolio which includes the development of the high-value Energy & Chemicals Park Rheinland.”

Shell to divest its stake in PCK oil refinery to Alcmene

Shell to divest its stake in PCK oil refinery to Alcmene. Photo courtesy of PCK Raffinerie GmbH.

The PCK oil refinery has a processing capacity of nearly 220,000 barrels of crude oil per day.

Shell’s partners in the crude oil refinery in Schwedt are Russian energy company Rosneft (54.17%) and Italian oil and gas major Eni (8.33%), which have pre-emption rights to acquire the former’s stake within three months of the signing of the deal with Alcmene.

As per Shell, the hydrocarbon inventory present at the PCK oil refinery will be valued at the closing of the transaction, which will be calculated on the actual volumes and the market prices prevailing at that time.

On the basis of the present market prices coupled with historic inventory volumes and normal operating conditions, the hydrocarbon inventory has a current value of $150-$250 million.

Shell said that Germany remains to be a core country for the company in reaching its target of net-zero emissions and that the deal will not impact any of its other interests or operations in the country.

Subject to partner rights and receipt of regulatory approval, the transaction is likely to close in the second half of this year.

In May 2021, Shell had signed a $460 million deal to sell its stake in the Malampaya gas project in the Philippines to Malampaya Energy XP, a subsidiary of Udenna Corporation.

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