Shell to Sell Share in French Ethylene Cracker to Basell

Shell Chemicals companies and Basell today signed agreements for the sale of Shell Petrochimie Mediterranee’s (SPM) 50% share in Société du Craqueur de l’Aubette (SCA) to Basell.

SCA owns the ethylene cracker at Berre in southern France and Basell currently holds 50% of the SCA shares. Once the transaction is completed, the cracker will be wholly-owned by Basell.

As part of the agreement, Basell will also acquire the butadiene business of Shell at Berre, including the butadiene assets, as well as logistic assets associated with the cracker operation in Aubette, Berre and Fos.

SPM will continue to operate the cracker, logistic assets and butadiene plant under the terms of the relevant operating agreements with Basell.

The transaction is subject to approval by the relevant antitrust authorities and other customary closing conditions. Completion of the transaction is expected at the end of 2005.

“This transaction enables us to fully integrate the cracker with our state of the art PP and PE plants at Berre and PE plant in Fos and will strengthen Aubette as a strategic platform to support our polyolefin business for the long term," said Frans Jongen, executive vice president of manufacturing and services at Basell.

Graham van’t Hoff, Shell Chemicals Vice President for Base Chemicals Europe, said: “Basell is a very important customer for Shell and we are delighted that we have been able to secure a deal which brings value to Shell and strategic benefits to Basell.”

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