Shell Gas this week concluded a deal to sell its 51% stake in the company to the Sri Lankan government at a price of $63 million, with all assets due to be handed over on November 15, its local chairman Walter Sanchez said.
The same deal includes 100% of shares in Shell Terminal Lanka Ltd. Other government sources said the cabinet will decide next week on the managers of the new company under a new brand name – Litro. Laugfs has been eyeing management of the company.
Mr Sanchez told the Business Times that Shell’s entire staff of 138 workers, in terms of the share sale, will continue to work in the government-owned organisation ‘under the same terms and conditions’.
He said no employee has opted to leave the company following the Shell share sale.
Mr Sanchez, who is returning to the Shell firm in France, said the global company has so far signed LPG sale and purchase agreements with five countries – Sri Lanka, Pakistan, Singapore, Hungary and Poland.
This is line with a review of ownership options for most of the company’s Shell Gas (LPG) businesses. The scope of the review also included France, Belgium, Netherlands, Luxembourg, Denmark, Finland, Sweden, Norway, United Kingdom, Malaysia, Philippines, Singapore and Argentina.
Meanwhile new legislation is being drafted to empower the Public Utilities Commission of Sri Lanka (PUCSL) as the regulator of petroleum industries. The proposed law will permit the PUCSL to determine the price of LP gas in consultation with the Ministry of Petroleum Industries, the Finance Ministry and LP gas companies, a senior PUCSL official.
At present the LPG price is being determined in accordance with the pricing formula proposed by the Supreme Court. The powers to revise prices have been vested in the Ministry of Petroleum Industries, and the Finance Ministry while the Consumer Affairs Authority has the power in ensure reasonable pricing. |
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