Shell and Prax call off deal on German refinery stake

Spanish Market: Oil products
20/12/24

Shell's planned sale of its 37.5pc stake in Germany's 226,000 b/d Schwedt refinery to UK energy firm Prax has fallen through.

"Both parties have taken the decision not to proceed with the transaction," Prax said, without elaborating. The refinery will continue to operate as normal, it said.

Shell said the companies had reached the end of an agreed timeframe for closing the deal. It said it is still looking to sell the stake.

The deal with Prax, which was announced a year ago, was initially due to be completed in the first half of 2024.

Shell owns its stake in Schwedt through the PCK joint venture, which also includes Italy's Eni and Rosneft Deutschland, one of the Russian firm's two German subsidiaries.

Shell previously attempted to sell its PCK share to Austria-based Alcmene in 2021 but that deal failed to complete after Rosneft Deutschland exercised its pre-emption rights later that year. Rosneft was unable to buy the stake after the German government placed its two German subsidiaries under trust administration in 2022 in the wake of Moscow's invasion of Ukraine, forcing Shell to seek an alternative buyer.

In October, a court in Germany rejected a complaint by Rosneft Deutschland against Shell's plan to sell its PCK stake to Prax.

By Svea Winter

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US Congress passes waterways bill

19/12/24

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19/12/24

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19/12/24

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US Army Corps proposes new Illinois River lock

18/12/24

US Army Corps proposes new Illinois River lock

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