15-12-2023

Prax Group agrees to acquire interest in PCK Schwedt refinery

The Prax Group has announced that it has signed a Sales and Purchase Agreement to acquire a 37.5% interest in PCK Schwedt Refinery and its associated logistic assets from Shell Deutschland GmbH. PCK is jointly owned by Shell Deutschland GmbH (37.5%), Rosneft Deutschland GmbH (37.5%) and AET (25%). AET is owned by ENI (1/3) and Rosneft Refining and Marketing GmbH (2/3). The transaction is subject to the necessary customary approvals and consents.

Located in the Berlin-Brandenburg region, PCK is one of Germany’s largest refineries (with a capacity of 245K bpd) and is a national strategic asset, responsible for supplying c.90% of Berlin’s demand, and servicing the broader East German region. In addition, the refinery plays an important role supplying oil products to Poland, and other neighbouring European countries.

The transaction aligns strategically with the Prax Group’s recently completed acquisition of the OIL! Tankstellen petrol retail network, substantially enhancing the Group’s customer offering on continental Europe. This will in turn see the Prax Group become a significant presence in the German market and a major player in the European refining sector.

The Group’s intention is that PCK will be key in supporting further European expansion, allowing Prax to better meet the needs of its customers across Europe , whilst continuing to ensure security of supply. The Group plans to support the activities of the refinery through the ongoing energy transition, and to provide further opportunities in the region.

The Prax Group has a proven track record of operating, optimising and improving strategically important assets across the oil value chain, from upstream to downstream. This acquisition will bring new investment to the refinery, to ensure the future of the asset and its employees, and underlines the Group’s determination to support the local economy and wider community.

Separately, the divestment of PCK is part of Shell’s intent to reduce its global refinery footprint to core sites integrated with the company’s trading hubs, chemicals plants and marketing businesses.

Sanjeev Kumar Soosaipillai, Chairman and CEO of the Prax Group said: “The signing of this agreement marks another key milestone for the Group as we look to diversify geographically and enhance our European market presence. This follow-on acquisition in Germany provides us with a solid platform in the heartland of Europe, from which to continue our expansion strategy, while reaffirming our ongoing commitment to building a solid and transformative supply chain to meet the needs of our customers.”