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 energy projects.