UPDATE 3-Shell in exclusive talks to sell Swedish refinery

* St1 negotiating to buy Gothenburg refinery

* Follows Shell's agreement to sell German Heide refinery

* Local market-oriented sites selling ahead of complex ones

(Adds analyst quote)

By Ikuko Kurahone and Terhi Kinnunen

LONDON/HELSINKI, Sept 6 (Reuters) - Royal Dutch Shell (RDSa.L: Quote) is in exclusive talks with Finnish fuel distributor St1 to sell the oil major's Swedish refinery, both companies said on Monday.

If the companies reach an agreement, it would be the second European refinery deal for Shell in a short period, following the sale of its German refinery in late August. Both of them are relatively small plants that supply local markets.

"Shell and St1 have entered into exclusive negotiations for the potential sale of Shell's downstream businesses in Finland and Sweden to St1," Shell said in a statement. A Shell spokesman said the talks included the Gothenburg refinery.