(Reuters) -Shell is considering a potential sale of its chemicals assets in Europe and the United States, the Wall Street Journal reported on Sunday, citing sources familiar with the matter.
The energy group has hired Morgan Stanley to conduct a strategic review of its chemicals operations, the report said.
Shell declined to comment. Morgan Stanley did not immediately respond to a request for comment outside regular business hours.
Potential buyers could include private equity firms and Middle Eastern entities seeking to expand their Western presence, according to the newspaper.
The review is in its early stages and Shell has not yet made any definitive decisions regarding a potential sale, the Journal reported, adding that one of the assets included in the review was Shell’s Deer Park facility in Texas.
The Deer Park operation is adjacent to a refinery where Shell previously sold its 100% stake to its joint-venture partner, Mexican state oil firm Pemex.
Last year Shell sold its refining and chemicals hub in Singapore, one of the world’s largest.
The British company warned earlier this year that it expects trading in its chemicals and oil products division to be significantly lower quarter-on-quarter due to lower seasonal demand.
Shell chief executive Wael Sawan has been focused on cutting costs and pivoting the company back to its most profitable sectors — oil, gas, and biofuels — while shifting away from renewable power.
Last December, Reuters reported exclusively that the oil major was stepping back from new offshore wind investments and is splitting its power division after a review of the business that was once seen as a key driver of the company’s energy transition strategy.
(Reporting by Bipasha Dey in Bengaluru; additional reporting by Gursimran Kaur, Editing by Jane Merriman and Ros Russell)
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