Shell has confirmed plans to exit South Africa after more than 120 years of operation.
In a statement issued on Monday afternoon, the oil major said it had decided to divest its majority shareholding from a local South African downstream unit following 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 SDSAs illustrious history, this decision was not taken lightly,' the company said.
Shells statement follows on reports from the City Press and Sunday Times that it intended to exit South Africa. The publications also reported Shell was in a dispute over separation terms with its empowerment partner - the Thebe Investment Corporation - an investment vehicle linked to the ruling ANC by virtual of its majority shareholder, the Batho Batho Trust.
Shell lost its refining capacity in South Africa when the Sapref refinery a joint venture with BP was shuttered in 2022. Plans to sell the refinery to the governments Central Energy Fund fell apart after floods caused severe damage to the plant.
'Over more than 120 years in South Africa, Shell has built an enormous legacy that we can all be proud of. We have made a significant contribution to nation-building by powering lives through our products and services, our people, promoting equity and inclusion, and making a positive impact on society through our social investment programs. We have also built one of South Africas most recognisable and loved brands,' the company said.
'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.'
