Shell Malaysia to continue relationship with SRC

Shell Malaysia will continue its relationship with Shell Refining Company (SRC) following the sale of Shell Overseas Holdings Ltd (SOHL) 51 per cent shareholding in SRC to Malaysia Hengyuan International Limited (MHIL).

In a statement today, Shell said SRC would remain a refinery while MHIL would invest in upgrades to meet the locally mandated Euro 4M and Euro 5 requirements.

It said the refinery is expected to play a vital role in Shell Malaysia's downstream supply chain and the overall security supply for Malaysia.

"MHIL is a competent and experienced refiner with technical and financial capabilities to take the refinery forward and continue its operations," said SRC Chairman and Chairman of Shell Companies in Malaysia Datuk Iain Lo.

In February this year, SRC sold its entire 51 per cent stake in a refinery in Port Dickson to MHIL for US$66.3 million (RM276 million).

"This sale is in Malaysia's best long term interest for fuel supply, hence safeguarding jobs and giving SRC a new lease of life," Lo said.

He said Shell remained confident in Malaysia despite the current challenging global economic landscape, as well as lower crude oil prices, and have much to contribute to the nation's development. - BERNAMA