One door opens and a series of doors close for Royal Dutch Shell as it continues to rationalise its downstream operations.
In Indonesia, the company announced the construction of a new $100m plant capable of producing 100,000 tons of lubricants annually.
The site, likey to be built in Western Java, is being developed as a hub to supply Indonesia and the Asian region including China, India and Vietnam. The plant is set to become operational at the end of 2013 or early 2014, employing 700 workers during construction and 250 people once operational.
Shell hinted at further developments in the country depending on the incentives offered by the Indonesian government relating to tax and raw material duties.
Meanwhile, Shell has also agreed to sell $1bn-worth of downstream operations in 14 African countries. The deal, with Swiss-based joint-venture companies Vitol Group and Helios Investments, gives the two organisations majority shareholdings in Shell's sub-Saharan African fuel and lubricants operations including in Uganda.
Two separate organisations will be set up. The first will give Vitol and Helios an 80% stake and operation rights for oil products, distribution and retail outlets in 14 countries with an option on a further five.
The second company provides a 50/50 split to operate Shell's lubricants blending sites in seven African countries as well as relationship management with micro-distributors.
The deal promotes Vitol Group and Helios to the largest global petroleum retail business alongside French major Total.