Select Committee on Trade and Industry Appendices to the Report


Memorandum submitted by the Royal Dutch/Shell Group of Companies

The Royal Dutch/Shell Group of Companies has been engaged in a wide variety of activities in Turkey for 80 years.

  Our marketing activities in Turkey have been very successful in recent years where we are involved in Retail, Commercial, Marine and Aviation businesses.

  Shell Turkey has a network of around 570 retail stations and a fuels differentation programme which has moved Shell up to first position in unleaded gasoline market share. Overall, in terms of the retail market share in fuels Shell is very close to second position, and in commercial lubricants sharing the first position. Our retail business has shown a significant increase in profitability over the past two-and-a-half years.

  The Commercial business has also been showing a steady growth over recent years by the successful implementation of various customer value propositions. One good example is the launch of an innovative and pioneer proposition for the Commercial Road Transport market—the Vehicle Identification System. In three years this system reached to 1,100 customers with their 33,500 vehicles.

  On the Upstream side of the business emphasis is now shifting from oil production (until 1996) to the importation of gas with subsequent commercial activities as soon as the market liberalises. We are making significant investments into power generation projects which are already under construction.

  These activities are not expected to have a strong impact on the bilateral movements of goods and services, but will mean that the UK and The Netherlands will both be seen as large investors into Turkey. This should create substantial goodwill at a time when Turkey is preparing to join the European Union.

  In the long term the pipelines involved will also serve to transport gas to Western Europe and enable Turkey to reduce its likely dependency on Russia of that market.

  The UK Embassy is aware of our plans and the investment levels involved and have been very supportive in helping us to understand the intentions of the Turkish Government which is still strongly involved in these huge infrastructure developments for its heavily energy import-dependent country.

29 September 2000

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