Royal Dutch/Shell Group of Companies (Shell) and Repsol YPF announced today the signing of a Sale and Purchase Agreement relating to the divestment of Shell Gas (LPG) business in Portugal. Shell will continue to operate in Portugal through its Lubricants business and the Madeira distribution terminal (Madeira Praia Formosa S.A.).



The divestment of the Shell Gas (LPG) Portugal, subsidiaries and shareholdings, includes the assets of two LPG filling plants, more than two million cylinders, supply, distribution and customer contracts covering mainland Portugal and the islands of Madeira and Azores. The sale is subject to regulatory approval and completion is expected in the 1st Quarter 2005.



Rob Routs, Shell Executive Director Downstream said, “The sale of the LPG business in Portugal is in addition to our earlier Retail and Commercial marketing divestment in that country and we believe that the interests of the business, staff and shareholder are best served by divesting the business to Repsol.”



“Shell remains committed to reviewing the sale of its entire LPG global business as a single package. Meanwhile work that was already underway to structure LPG into a standalone global operation will continue,” said Mr Routs.