Shell has confirmed it continues to move forward with plans to sell its downstream assets in South Africa, a decision that could eventually end more than 100 years of its petrol station operations in the country.
The company first revealed the planned sale in May 2024, when reports showed that Shell intended to sell its majority stake in Shell Downstream South Africa after reviewing its global business portfolio.
At the time, Shell explained that the review led to a decision to restructure its downstream portfolio and pursue the sale of its shareholding in SDSA, noting that the choice followed careful consideration. The company did not give a timeline for when the change would happen.
The planned sale reflects Shell’s wider strategy to scale back downstream activities and place greater focus on upstream operations, including oil and gas exploration and production.
Shell holds the assets through Shell Downstream South Africa, its local downstream division that runs one of the largest fuel retail networks in the country.
If the transaction goes through, it will mark the end of a presence that began in 1902, when Shell first supplied petroleum products in South Africa for lighting and household heating.
Almost two years after the initial announcement, the sale has not yet been finalized, but the company says the process is still in progress.
Shell Downstream South Africa confirmed that the divestment process remains ongoing.
source: africa.businessinsider.com
African Energy Council