Delgado acquires Shell Guam's downstream, business

MANILA, Nov. 27 (PNA) -- IP & E Holdings LLC, a Filipino firm owned by the Delgado family, has acquired world’s leading oil refiner Royal Dutch Shell’s downstream marketing businesses in the North Pacific Islands, including Guam, Saipan and Palau.

Shell announced this in a statement but did not reveal much the deal was worth.

The deal, which is subject to regulatory approvals and consents, follows a review by Shell of its downstream marketing businesses in the North Pacific and is consistent with the company’s strategy to concentrate its global downstream portfolio.

There were two agreements signed by the two firms, the sale of Shell’s North Pacific islands to IP & E Holdings and a distributorship agreement.

The first agreement covers the sale of Shell’s retail, commercial and aviation businesses owned by Shell Guam Inc. and Shell Pacific Inc.

Under the terms of the deal, the retail network will remain Shell-branded through Trademark Licensing Agreements, while aviation will be serviced through a Technical Service Agreement.

The second agreement covers the appointment of the Filipino firm as distributor of Shell-branded lubricants and service Shell Marine Product customers for North Pacific Island markets.

The decision by Shell to move to a distributor model supports its portfolio focus drive and follows a number of similar deals in other countries. The agreement is also subject to regulatory clearance.

The purchase of Shell’s downstream marketing business in the North Pacific and the distribution of Shell products would beef the Delgado family’s portfolio of investments in the region.

Upon the completion of this transaction, the family would have invested approximately $ 150 million in the region from the time it acquired the fixed and wireless assets of Verizon Communications, the biggest wireless company in the U.S, in 2005.

The IP & E Holdings also owns IT & E firm, the leading telecom company in the North Pacific Islands in partnership with Sumitomo Corporation of Japan, one of the largest Japanese trading companies.

IP & E Holdings LLC is a subsidiary of Prospector Investments Limited, a member of the Delgado group of companies that includes Citadel Holdings in the Philippines.

The Philippine-based Delgado group owns a diversified private equity holding and management company that had its beginnings in the petroleum industry as far back as the 1940’s.

Today, it has investments in aviation services, logistics solutions, telecommunications, and fuels and lubricants supply and marketing.

Royal Dutch Shell is a global leader in the downstream business.

The company has some four million barrels of crude oil per day of world wide refining capacity.

Shell is the world's largest single branded fuels retailer with some 46,000 service stations worldwide, and operations in some 90 countries and territories around the world.

Its Guam unit, Shell Guam, Inc. has been providing high quality fuels and professional services in the North Pacific region for 21 years.

Incorporated in Guam on December 1st, 1987, Shell purchased the assets of the Guam Oil & Refining Company on November 30, 1988, currently known as the Agat Terminal.