Exxon Mobil (NYSE:XOM) and LyondellBasell NV (NYSE:LYB) are reportedly among the potential buyers considering Shell’s (LSE:SHEL) US chemicals operations, as the British energy group looks to dispose of underperforming assets.
The portfolio could be valued at as much as $8 billion, according to a Financial Times report on Monday citing people familiar with the process.
Apollo and Kuwait Petroleum Arm Also Reportedly Interested
Private equity group Apollo and the chemicals division of Kuwait Petroleum Corporation have also shown interest in the assets, the report said.
Potential buyers submitted non-binding bids last month as Shell moves forward with the sale process.
The US portfolio comprises four facilities located across Louisiana, Texas and Pennsylvania. Among the assets is Shell’s Monaca petrochemicals complex in Pennsylvania, which began operating in 2022.
Monaca Complex Represents Major Shell Investment
Shell invested approximately $14 billion in the Monaca facility, which has annual production capacity of up to 1.6 million tonnes of polymers.
A sale of the wider US chemicals portfolio for around $8 billion would therefore represent a substantial discount relative to the capital Shell has invested in its American chemicals operations, according to the report.
The potential disposal comes as Shell seeks to streamline its portfolio and reduce exposure to operations that have delivered weaker returns.
European Chemicals Assets Also Being Marketed
Shell is also working with advisers on plans to market its chemicals operations in Europe, the Financial Times reported.
Those assets are expected to attract a considerably lower valuation than the US portfolio.
The moves indicate a broader effort by Shell to reshape its chemicals exposure as the energy major reviews the performance and strategic role of the division within its wider global operations.
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