Shell is set to offload its Australian downstream operations.
The deal, expected to close in 2014, will see Shell’s Geelong Refinery and 870-site retail business - along with its bulk fuels, bitumen, chemicals and part of its lubricants businesses - being taken on by Vitol.
Not included in the agreement are Aviation and the Brisbane-based lube oil blending and grease plants which will be converted to bulk storage and distribution facilities.
The agreement, part of a global Shell divestment programme, has been described by the company's Chief Executive Officer, as Shell "making tough portfolio choices to improve [its] overall competitiveness." It will be subject to regulatory approvals.
The deal also includes an exclusive distributor arrangement for the Swiss-based, Dutch-owned Vitol organistion. This will provide it with Australian rights for Shell Lubricants, with the brand continuing to be displayed across the oil giant's service station network.
The jobs of most of Shell's downstream staff in Australia will be unaffected by the deal, as will the company's upstream operations.