The Wall Street Journal: Shell To Exit Brazil's Fuel Distribution Market - Report

DOW JONES NEWSWIRES

June 7, 2004 9:27 a.m.

Posted 8 June 04

RIO DE JANEIRO -- Royal Dutch/Shell Group (RD) is planning to exit Brazil's fuel distribution market, local daily O Globo said Sunday.

The report said Shell could sell its 2,000 service stations in Brazil to Petroleo Brasileiro SA (PBR), Brazil's federally-owned oil group.

A Royal Dutch Shell spokesman said there are no such negotiations.

Last week, Jornal do Brasil, another local daily, said Shell was reviewing its portfolio in Brazil and that it would cut investments in 2004. Quoting Shell 's Brazilian exploration and production VP John Haney, the report said results from recent E&P investments in Brazil have been below expectations, and the company would focus on its operations in Nigeria and the Gulf of Mexico.

By Adriana Brasileiro, Dow Jones Newswires; (5521) 3288-5004; adriana.brasileiro@dowjones.com