Shell, on February 18, confirmed it had received an offer from
Essar Energy to buy its 272,000 barrel-per-day Stanlow
refinery and associated local marketing businesses in the
UK for a total expected consideration of some $1.3 billion, the
company said in a news release.
In light of Essar's offer, the two companies signed an exclusivity
agreement until April 1, 2011, under which break fees would be
payable if either company failed to sign an asset sales agreement.
In addition to the proposed sale of the assets, which would be
expected to close by mid-2011, the two companies would enter
into an exclusive five-year crude supply contract by Shell to Essar
and into long-term agreements for the supply of products in the UK
by Essar to Shell.
Meanwhile, in a new report on future energy scenarios, Shell
noted, "We are seeing a step change in energy use. Developing
nations, including population giants China and India, are entering
their most energy-intensive phase of economic growth as they
industrialise, urbanise, build infrastructure, and increase their use
of transportation. Demand pressures will stimulate alternative supply
and more efficiency in energy use, but these alone may not be
enough to offset growing demand tensions completely. Underlying
global demand for energy by 2050 could triple from its 2000 level if
emerging economies follow historical patterns of development."
Royal Dutch Shell plc, incorporated in England and Wales, has
its headquarters in The Hague, has operations in more than 90
countries and territories with businesses including oil and gas
exploration and production; production and marketing of liquefied
natural gas and gas to liquids; and manufacturing, marketing
and shipping of oil products and chemicals and renewable