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Portfolio actions

In Business to Business, we finalised an agreement with TravelCenters of America in the USA to develop a nationwide network of LNG fuelling centres for heavy-duty road transport customers at up to 100 existing sites.

In Lubricants, we have formed a joint venture, Singapore Lube Park, to build and operate shared import, export and storage facilities. Alongside these shared facilities, we will build our own lubricants oil blending plant and grease manufacturing plant with starting capacities of 350 thousand tonnes per annum and 10 thousand tonnes per annum respectively. In China we opened our largest grease plant worldwide in Zhuhai.

We continue to divest non-strategic downstream positions. We completed the sale of the LPG business in Malaysia and the majority of our shareholding in retail and commercial fuels activities in Uganda, Ghana and Egypt. In Ghana, our lubricants will be marketed through the Vivo joint venture; in Egypt, we retained the lubricants business. The agreements form part of the divestment of our shareholding in most of our downstream activities in Africa, as announced in 2011.

In Manufacturing, we sold the Harburg base oil manufacturing plant and some associated refinery facilities in Germany, agreed the sale of the Geelong refinery in Australia, subject to deal completion, and completed the sale of our shareholdings in the Kralupy and Litvinov refineries in the Czech Republic. In Norway, effective from January 1, 2014, we completed the sale of our 21% interest in the Mongstad refinery. Under the same transaction, we acquired an additional 10% interest in the Pernis refinery in the Netherlands, making this refinery again 100% owned by Shell.

The proposed sale of interests in these refineries is in line with our global strategy to concentrate investment on large-scale sites.

In February 2014, we signed agreements for the sale of the majority of our downstream activities in Italy and Australia, including the Geelong refinery referred to above, subject to deal completion which is expected in 2014.