(Updated) Philippine firm acquires gas stations of Shell in Guam, Saipan

(Updated) - A Philippine company acquired distribution assets – including gasoline stations – of Royal Dutch Shell in the North Pacific Islands (NPI), an area which includes Guam, Saipan, and Palau. Island Petroleum and Energy Holdings LLC, which is controlled by the Philippine-based Delgado family, bought the petroleum giant’s downstream marketing businesses in the region, Shell Guam said in a statement posted at its website. The statement did not disclose the amount of the transaction which covers the sale of retail, commercial, and aviation businesses owned by Shell Guam Inc. Under the sale agreement, the retail network “will remain Shell-branded through trademark licensing agreements," the same statement said. “[A]viation will be serviced through an aviation technical service agreement." Employees of Shell in Guam, Saipan, and Palau – estimated at 100 people – will be given the chance to continue working, IT&E president and chief executive officer Jose Ricardo Delgado said in a report made by Guam Pacific Daily News. IT&E is an affiliate of IP&E. The agreement requires – and is still awaiting – regulatory approval. Under separate agreements, the Delgado-led company will also be appointed as the distributor of Shell-branded lubricants and serve Shell’s marine product customers in the NPI. “The decision by Shell to move to a distributor model supports its portfolio focus drive and follows a number of similar deals in other countries," Shell Guam said. Once completed, the transaction will increase the Delgado family’s portfolio of investments in the region, which are estimated to be worth $150 million. IP&E is a subsidiary of Prospector Investments Ltd., which falls under the Delgado group of companies that include Citadel Holdings in the Philippines. Privately-led Citadel has investments in aviation services, freight management and logistics, and telecommunications, the company said in its website. It used to control Isla Communications (Islacom), which launched the Philippines’ first digital mobile phone service using the Global System for Mobile (GSM) Communications in 1994. In February 2000, Islacom, among other companies, agreed to merge its operations under Globe Telecommunications. In 2005, the Delgado group – through its company, IT&E – bought wireless and fixed-line assets of US-based Verizon Communications in Guam and Saipan. IT&E now offers internet, fixed-line, and mobile phone services in the region. The Delgado group’s strategic partner in IT&E includes Sumitomo Corp., one of Japan’s largest trading companies. with RJAB Jr., GMANews.TV