‘S-GRAVENHAGE, Netherlands- based Royal Dutch Shell PLC (RDSB) announced that it has reached an agreement to sell its Australian aviation fuels business in Australia to Viva Energy Australia Pty. Ltd. for around US$250 million.
According to reports, Viva Energy previously held a licensing arrangement to sell Shell-branded fuels and lubricants in the country and plan to keep on selling Shell-branded aviation fuels following the sale.
In its official announcement, Royal Dutch Shell PLC (RDSB) highlighted that the deal is likely to be finalized in the middle of next year, subject to regulatory approval. Meanwhile workers of Shell Aviation Australia will remain in a job by the firm as it is going in the hands of a new management.
In the meantime Viva Energy, which is supervised by European energy trader Vitol Holdings B.V., was originated in 2014 with the purchase of Shell’s Geelong refinery in southern Australia and its 870-site retail business, along with its bulk-fuels and chemicals businesses in Australia, in an agreement that was worth about US$2.6 billion. That sale didn’t cover the aviation business and some of Shell’s oils businesses.
Moreover Viva Energy Chief Executive Scott Wyatt said in a statement that the company has been the exclusive supplier Shell’s jet fuel in Australia over the past two years, and the purchase of the business would let the company to swell into airports and deliver direct supplies to customers. He also added that there were prospects to expand the volume of the supply chain and to surge sales in smaller airfields throughout the country.