The acquisition, which is due to be completed in the second half of 2007, will furnish Shell with 44 ProJet-branded retail service stations and 14 vacant land sites primarily in Kuala Lumpur, Selangor and the State of Johor in southern Malaysia.
Mohzani Wahab, managing director of Shell Malaysia trading, said: The ProJet acquisition is consistent with Shell’s strategy – more upstream and profitable downstream – where investing in fast growing eastern markets is crucial to business success.
Mr Wahab pointed out that Malaysia is a key growth market for Shell, and said: These additional sites, which complement the 830-strong existing Shell retail service stations, offer our customers quality fuels at convenient locations throughout Malaysia.
Once the acquisition, which is subject to regulatory approval, is complete, the ProJet stations will be rebranded to Shell within six months. Shell said that it will now work on facilitating a smooth operational transition.
Shell concluded that ConocoPhillips’ divestment of its interest in ProJet follows a review of the company’s global downstream strategy. ConocoPhillips will continue to operate in Malaysia’s oil industry through its share in the Melaka II refinery and its exploration and production activities in the region.
