Thursday, October 7, 2010

Sri Lanka Shell says sale agreement not signed yet

Oct 07, 2010 (LBO) - Sri Lanka's Shell Gas unit said operations at the firm would remain unchanged until a sale of its stake is finalized, shortly after the government said it would buy out the oil giant for 63 million US dollars.

"We are hopeful a sale purchase agreement will be signed soon," Shell Gas Lanka's country chairman Walter Sanchez said in a statement.

"However at this point, the agreement has yet to be signed and our discussions with the Government remain confidential."

The firm said the sake is in line with a group "strategy to refocus its global downstream footprint into fewer, larger markets."

"Until a deal is concluded, Shell Gas Lanka’s operations will continue as usual. We wish to state that running a safe, cost-effective and reliable operation remains our top priority."

The government said it is buying full control of the gas businesses but will sell down 49 percent to the public.

source - www.lbo.lk

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