Shell has revealed plans to divest from its South African downstream business, marking the end of its presence in the sector after more than a century. In a statement released on Monday, it was announced that the decision follows a comprehensive review of its downstream and renewables businesses worldwide.
The downstream sector, which involves the refining, transporting, and selling of fuel, has been a significant part of Shell's operations in South Africa. The company plans to sell its majority stake in Shell Downstream SA (SDSA). Currently, Shell operates over 600 fuel service stations across the country.
The decision comes amid reports of disagreements with Thebe Investment Corporation, Shell's empowerment partner, over separation terms. Shell's local refining operations were halted in 2022 when the Sapref refinery, a joint venture with BP, closed due to severe flood damage.
Shell highlighted its historical contributions to South Africa, including its support for nation-building and social investment programs. As it prepares to divest, Shell aims to preserve its operational capabilities and brand presence in South Africa, ensuring a smooth transition for employees and customers under new ownership.
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