Shell and Commerce One Announce Joint Venture
Shell and Commerce One Announce Joint Venture to Build Global Internet Marketplace for the Energy Industry
WALNUT CREEK, Calif.--(BUSINESS WIRE)--Jan. 13, 2000--Shell and Commerce One (Nasdaq:CMRC - news), the leading provider of global business to business e-commerce solutions, today announced a memorandum of understanding to form a joint venture to develop an Internet marketplace for procurement in the oil, gas and chemicals industry.
The parties expect to sign a binding agreement by the end of March 2000. The aim is to establish an electronic exchange to link buyers and sellers of goods and services across the energy industry throughout the world.
``This is a very significant move for us,' said Harry Roels, group managing director of the Royal Dutch/Shell Group of companies. ``Not only does it build on the changes we have been pushing through in procurement, but by allying with the dynamic Commerce One company we are setting the pace in the energy industry in terms of how we exploit Internet technology.'
The new global exchange, which will be based on the Commerce One MarketSite portal, will be designed to be open to energy companies, their suppliers and their customers. It will also be designed to help regionally based small- and medium-sized enterprises to compete globally in a way that was not possible before.
``Shell has recognized the huge impact that e-commerce will have on the energy industry,' said Mark Hoffman, president and CEO of Commerce One. ``Our leadership in e-commerce combined with Shell's strong industry presence worldwide will add a major new marketplace to the Commerce One Global Trading Web.'
As part of the agreement, it is anticipated that Commerce One will be paid license fees for its Internet technology. Initially, Shell will have the majority stake in the new joint venture; Commerce One and the joint venture staff will also have an equity stake.
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