Oil giant Shell is reportedly exploring the possibility of selling its chemical assets in Europe and the United States as part of a strategic review of its operations.
The company has engaged Morgan Stanley to assess its chemicals business and explore potential changes, including a possible sale.
The assets under consideration include several manufacturing facilities that produce petrochemicals and specialty chemicals used in various industries.
One of the key facilities in the review is the Deer Park facility in Texas, which produces a range of olefins utilised in products like pharmaceuticals, adhesives, and cleaning agents.
Shell also operates chemical plants in Pennsylvania and Louisiana in the US, as well as facilities in the UK, Germany, and the Netherlands. However, it’s important to note that the review is still in its early stages, and no final decisions have been made regarding any potential sales.
This strategic move aligns with CEO Wael Sawan’s focus on high-margin ventures and shift away from renewable energy towards oil, gas, and biofuels, as well as being in the wake of Shell’s profits plummeting by nearly £5 billion in 2024.
“This initiative aligns with CEO Wael Sawan’s strategy to concentrate on high-margin ventures, shifting focus from renewable energy to oil, gas, and biofuels,” reported Yahoo Finance.
The potential divestment follows Shell’s recent sale of its chemicals park in Singapore and reflects the company’s ongoing efforts to streamline its operations.
The chemical sector has faced challenges in recent years, including volatility in raw material prices and post-pandemic demand fluctuations.
Industry experts suggest that potential buyers could include private equity firms and Middle Eastern companies looking to expand their presence in Western markets.
Shell has declined to comment on the matter, while Morgan Stanley has not yet responded to requests for comment.
