Shell Deutschland (Shell) has reached an agreement to sell its 37.5% stake in Germany’s PCK to Prax Group.

The companies did not disclose the financial terms of the transaction, which also includes PCK’s associated logistic assets.

Russian oil company Rosneft owns a 54.17% stake in the refinery and Italian energy company Eni owns the remaining 8.33%.

Rosneft’s assets in Germany were put under trusteeship by Berlin following Moscow’s decision to invade Ukraine in early 2022.

Earlier this year, UK-based Shell revived efforts to sell its stake in PCK.

Announcing the deal, Shell said the divesture forms part of its efforts to focus its worldwide refining portfolio on key locations that were integrated into the oil and gas company’s operational centres.

With a capacity of 245,000 barrels per day, PCK is one of Germany's largest refineries and is situated in the Berlin-Brandenburg region.

Prax, a UK-based independent energy company, said the refinery serves the entire East German territory and meets about 90% of Berlin's needs.

The refinery is also crucial in providing oil products to Poland as well as surrounding European nations, it added.

Prax noted that PCK will facilitate its growth across Europe, enabling it to ensure supply security while also better serving its European customers.

Furthermore, the deal is said to strategically complement Prax's recently concluded acquisition of the OIL! Tankstellen fuel retail network.

Prax Group chairman and CEO Sanjeev Kumar Soosaipillai 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.”

Shell executive vice-president, chemicals and products Machteld de Haan said: “This is another important milestone on the path to a focused refining portfolio and the development of high-quality, integrated sites such as the Energy&Chemicals Park Rheinland.”