Shell sells stake in Malaysian refining unit

Royal Dutch Shell has agreed to sell the 51% stake in its Malaysian refining unit to Malaysian Hengyuan International for $66.3m (£46.4m).

Shell said the deal, which is expected to complete this year, is consistent with its strategy of concentrating its global downstream footprint and businesses where it can be most competitive.

The company, whose merger with BG was given the green light by both sets of shareholders last week, said Malaysia continues to be an important country for the group.

Shell said it is the leading retail fuels and lubricants provider and continues to invest in growing these businesses in the country.

Other recent downstream divestments from Shell include the sale of businesses in Australia and Italy, a number of retail sites in the UK and the initial public offering of, and further drop downs to, Shell Midstream Partners L.P.

The oil major also agreed to sell its marketing businesses in Denmark and Norway, its liquefied petroleum gas businesses in France and a 33.2% stake in Showa Shell Sekiyu KK.

At 1036 GMT, Shell’s B shares were down 0.9% to 1,508p.