VIDEO: Cabinet approves purchase of 51% shares of Shell

The Cabinet had approved the purchasing of 51% shares of Shell Gas Ltd for US$ 63 million, the Government Information Department said a short while ago.

 

Last month it was rumoured that the Sri Lankan government was likely to seal the re-purchase deal of Shell Gas Lanka (Pvt) Ltd. the local Liquid Petroleum Gas (LPG) retail unit run by Royal Dutch Shell (RDS) of Netherlands,

 

In June RDS offered to sell- Shell Gas Lanka Ltd. and Shell Lanka Terminal Ltd., as a part of its worldwide strategy to review its business units in Europe, Asia and Latin America. While the Government already owns 49 percent stake of the Shell Gas Lanka Ltd., Shell Lanka Terminal Ltd., is fully owned by the Royal Dutch Shell. Thereafter Sri Lankan government on June 17, expressed its willingness to take-over Shell Gas Lanka.

The government sold its Colombo Gas Company outright to Shell in 1996 for $37 million.