Shell to reshape global operations with South Africa exit after 120 years
Oil giant Shell has announced plans to exit South Africa, marking the end of more than 120 years of operation in the Southern African nation.
In a statement issued on May 6, Shell Downstream South Africa (SDSA) announced its decision to divest its majority shareholding from its South African downstream unit. This move follows a comprehensive review of its downstream and renewables businesses across all regions.
"As a result of this review, Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in Shell Downstream SA (SDSA). Considering SDSA’s illustrious history, this decision was not taken lightly," the company stated.
The downstream business involves refining, transporting, and selling fuel to customers. Shell operates approximately 700 fuel service stations across South Africa, South African media News24 reported.
"Over more than 120 years in South Africa, Shell has built an enormous legacy that we can all be proud of… During the divestment process, we will work to preserve Shell Downstream South Africa's operating capabilities, maintain the Shell brand presence, and secure the best possible outcome for our people and customers in South Africa under new ownership," the company added.
The company is also selling its gas station business in Malaysia to Saudi Arabia's state-owned Saudi Aramco, according to Reuters. The sale of the gas station business in Malaysia, the country's second-largest network, could reportedly be worth up to $1 billion.
Shell's exit from part of its Asian and African market follows an earlier announcement on January 16 about the sale of its onshore operations in Nigeria.
This series of divestments is part of Shell CEO Wael Sawan's ongoing efforts to streamline its operations and focus on higher-return ventures. The oil giant plans to divest 500 gas stations in 2024 and 2025 and is currently in the process of selling its Singapore refinery and petrochemical complex, Reuters reports.
