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Shell sheds some Norwegian operations

Dutch supermajor responding to volatility in energy markets.

By Daniel J. Graeber

LONDON, Dec. 18 (UPI) -- Energy power Shell said Thursday it was shedding some of its business interests in Norway to better focus on competitive downstream operations in Europe.

Finnish fuels company ST1 acquires parts of the Norwegian downstream operations from Shell for an undisclosed sum. The company also takes a joint interest in Shell's aviation business in Norway.

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Shell said the measure includes a special retail license agreement to ensure the brand remains "highly visible" in the Norwegian market.

"The deal will have no impact on Shell's other businesses in Norway," the Dutch company said in a statement.

The decline in crude oil prices, nearly half of their June value, has forced some energy companies to streamline their portfolios to cope with the market stress. In October, Shell Chief Executive Officer Ben van Beurden said "the volatility in our industry" underlined the importance of keeping a tight hold on costs and spending.

The Finnish company operates Shell's retail fuel stations in Finland and Sweden. Shell said the sale to ST1 follows divestments elsewhere in the European and Scandinavian markets as it tries to cut costs in the bear market for crude oil.

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"The sale is consistent with Shell's strategy to concentrate its downstream footprint on a smaller number of assets and markets where it can be most competitive," it said.

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