THE HAGUE, Netherlands, Feb. 1 (UPI) -- Royal Dutch Shell said it took in more than $60 million for the sale of a majority of its holdings in a Malaysian refining company to a national company there.
Shell said the sale of a 51 percent holding in the Shell Refining Company in Malaysia to Malaysian Hengyuan International was consistent with its strategy to streamline its downstream, or refining, footprint.
"Malaysia continues to be an important country for Shell," the company said in a statement. "Shell is the leading retail fuels and lubricants provider and continues to invest in growing these businesses in the country."
A spokesperson for Shell said the company was positioning itself for a sustained downturn by cutting capital investments. The company last week said it expects fourth quarter profits to come in at around 50 percent lower year-on-year as the industry continues to suffer from the dramatic declines in crude oil prices.
Shareholders in Shell and BG Group approved of a combination last week. Shell in December said it anticipated capital investments for the combined entity for the year would be around $33 billion, $2 billion, or 5.7 percent, lower than previously forecast.
Swedish energy company Lundin also unloading assets in Malaysia, selling its working interest in three production sharing contracts in Malaysia to Dutch company DYAS.
Lundin offered no financial terms for the deal. The company in mid-January agreed to sell offshore floating production and storage vessel Bertram in Malaysia to M3Energy Investment Ltd., a state-controlled energy company in Malaysia, for $265 million.
Lundin last week announced its 2016 spending plan for exploration and appraisable activity would be 64 percent less than last year at $145 million.