Wednesday, June 9, 2010
Libya Offers $2 Billion for Shell Africa Units, Adviser Says
Bloomberg) -- Libya Oil Holding Co. offered to buy some of Royal Dutch Shell Plc’s downstream business in Africa for $2 billion, said Faissal Werfelli, a legal adviser in Tunisia to Europe’s largest oil company by market value.
Shell’s operations in South Africa are excluded from the proposed deal, Werfelli said in an interview in Tunis yesterday. Libya’s Alrahila Oil Services and the Vitol Group have also expressed interest in buying Shell’s downstream assets, he said.
“Sale is our preferred option but we can’t comment on potential buyers,” David Williams, a Hague-based spokesman for Shell, said by phone today.
The company said April 1 it wants to sell most of its downstream operations in 21 African countries.
Shell values its assets in Tunisia at about $140 million, said Werfelli, adding that the company will announce the buyer by mid-June. Shell has been operating in Tunisia since 1928, according to its website.
Libya Oil, previously known as Tamoil Africa, manages the country’s assets on the continent.
--Editors: Raj Rajendran, Randall Hackley.
--With assistance from Fred Pals in Amsterdam
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