Oil giant Royal/Dutch Shell confirmed Monday it was discussing the future of its US refining and marketing joint ventures with Texaco in the light of the takeover of the US company by oil group Chevron.
The US companies said as they unveiled the mega-merger on Monday that regulators might insist the new group divest certain assets in its US downstream operations.
Shell, which pooled its US refining and marketing interests with Texaco in 1998, said Monday that it was now discussing with the US company what to do with the joint ventures. A third partner, Saudi Refining Inc, is also involved in the talks.
"A number of significant issues remain to be agreed among the parties," said Shell in a statement, adding that it was "committed to the refining and marketing business in the US".
Analysts said Shell could well win out by being able to snap up the assets on the cheap if regulators forced Chevron-Texaco into a sale. "One element of the Chevron-Texaco deal for Shell is that they have a downstream joint venture with Texaco which Texaco will have to divest," said one London-based analyst with a large investment bank. "Shell could buy that, and this could be quite good for it."
Shell stock was down 0.6 percent at 592.5 pence by early afternoon.—AFP.
©--Agence France Presse.