Shell to sell Hong Kong and Macau liquefied petroleum gas business to DCC Energy
Royal Dutch Shell is to sell its liquefied petroleum gas business in Hong Kong and Macau to DCC Energy for 150.3 million US dollars (£120 million) as it continues a divestment drive.
The oil giant's interests in the territories date back almost 60 years and it currently supplies infrastructure to service the energy needs of more than 100,000 households.
DCC said that under its ownership the business is expected to deliver an annual operating profit of circa £15 million.
Shell downstream director John Abbott said: "This sale supports Shell's strategic commitment to focus downstream activities on areas where we can be most competitive.
"This is one of the last of our wholly owned liquefied petroleum gas businesses and this sale is another step in Shell's ongoing portfolio optimisation strategy to deliver 30 billion of divestments between 2016 and 2018."
Shell is embarking on an ambitious cost-cutting drive and a 30 billion US dollars (£24.6 billion) divestment initiative.
To this end, Shell announced in January that it will sell off a package of North Sea assets for up to 3.8 billion US dollars (£3 billion) to smaller rival Chrysaor.
DCC chief executive Tommy Breen said: "It is also DCC's first material step in building its business outside of Europe and gives DCC a platform for development in the growing liquefied petroleum gas market in Asia."
DCC also announced that Mr Breen will step down in July and be replaced by Donal Murphy, currently executive director and managing director.