Shell Australia

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Shell Australia
Industry Energy, petrochemicals
Headquarters Melbourne, Victoria
Products Petroleum products, lubricants, chemicals
Employees 2,500
Parent Royal Dutch Shell
Website www.shell.com.au
Shell petrol station in Wagga Wagga, New South Wales.

The Shell Company of Australia Limited, the Australian subsidiary of Royal Dutch Shell Plc, conducts a large range of activities. These include exploration for, and the production and commercialization of, oil and natural gas, the operation of two refineries, 19 terminals and 33 depots, for the manufacture and distribution of oil products. Additionally, the subsidiary markets lubricants, aviation products, marine oil products, bitumen and chemicals.

In February 2014, Shell sold its Australian refinery and petrol stations for A$2.9 billion (US$2.6 billion) to Vitol, a Geneva-based company.[1]

Service station network[edit]

Wesfarmers has operated most of Shell's retail service station network in Australia under the Coles Express brand since 2003, when (as Coles Group), it purchased the retail business of Shell Australia's multi-site franchisees for A$94 million.[2]

Shell is the exclusive supplier of fuel products to the Coles Express network,[3] leases the service station property to Coles, and maintains the presence of Shell branding. Coles Express sets fuel and shop prices and operates the business, provides convenience and grocery merchandise through its supply chain and distribution network, and directly employs service station staff.

Projects[edit]

Shell is currently developing the a Floating Liquefied Natural Gas (FLNG) facility, which will be situated 200 km off the coast of Western Australia and is due for completion in around 2017. When it is finished, the structure, which is being built in South Korea will be the largest floating structure ever.[4] It will measure around 488 m long and 74 m wide, and when fully ballasted will weigh 600,000 tonnes.[5]

In July 2011, the Federal Government gave approval for the company to drill an exploration well 50 km to the west of the Ningaloo Marine Park. The drilling operation will occur at depths of around 1,300 metres, the deepest ever in Australian waters.[6]

Refineries[edit]

As of August 2012, Shell operates two oil refineries in Australia: one at Corio in Geelong, Victoria, and one at Clyde in Sydney, New South Wales. The Clyde refinery will cease operations in September 2012, and will be converted to a fuel terminal.[7]

Following the decision by the Royal Dutch Shell fuel corporation to close its Geelong, Australia refinery in April 2013, a third consecutive annual loss was recorded for Shell's Australian refining and fuel marketing assets. Revealed in June 2013, the writedown was worth A$203 million, and was preceded by a A$638m writedown in 2012 and a A$407m writedown in 2011 after the closure of the Clyde refinery in Sydney, Australia.[8]

In February 2014, Shell sold its Geelong refinery and 870 retail sites for US$2.6 billion (A$2.9 billion) to the Vitol Group, which stated that the Geelong refinery will remain open. In a statement released on 21 February 2014, Royal Dutch Shell’s Australian unit said that the deal does not include its aviation-fuel business and it will continue to invest in the Australian market, with projects that involve Chevron Corp., Woodside Petroleum and Prelude.[9][10]

See also[edit]

References[edit]

  1. ^ "Vitol pays $2.6 billion for Shell's Australian refinery, petrol stations". Reuters. 21 Feb 2014. Retrieved 21 Feb 2014. 
  2. ^ "Fletcher upbeat about Coles Express". The Australian Financial Review. 2003-10-15. Retrieved 2009-08-30. 
  3. ^ "Downstream Operations". Shell Australia. Retrieved 8 July 2011. 
  4. ^ Rachel Hewitt (21 May 2011). "Economy, jobs boost as Shell makes a splash". Herald Sun (Herald and Weekly Times). Retrieved 8 July 2011. 
  5. ^ (August 2010). FLNG gets serious. Gas Today. Great Southern Press.
  6. ^ Rebecca Le May (7 July 2011). "Shell to drill off Ningaloo without review". The Sydney Morning Herald (Fairfax Media). Retrieved 8 July 2011. 
  7. ^ "Shell brings forward refinery closure". ABC News. 19 June 2012. Retrieved 12 August 2012. 
  8. ^ Matt Chambers (4 June 2013). "Geelong refinery writedown hits Shell for $203m". The Australian. Retrieved 6 June 2013. 
  9. ^ "Vitol pays $2.6 billion for Shell's Australian refinery, petrol stations". Reuters. 21 Feb 2014. Retrieved 21 Feb 2014. 
  10. ^ James Paton (21 February 2014). "Vitol to Pay Shell A$2.9 Billion for Australian Assets". Bloomberg. Retrieved 24 February 2014. 

External links[edit]