Shell confirms plan to ditch South Africa

Shell intends to exit shareholdings in its South African retail, transport and refining operations, Daily Maverick reported.

The energy company made the decision after reviewing its downstream and renewables business across all regions and markets, the website reported, citing Shell.

Local media, including Sunday Times and City Press, reported that Shell plans to exit South Africa, where it has about 600 forecourts and has operated since 1902.

Shell and BP’s southern African unit jointly own the Sapref refinery — the nation’s biggest — in Durban on the country’s east coast.

The 180,000-barrel-a-day facility halted operations ahead of a sale in 2022 and was subsequently damaged by floods.

The government published new rules in 2022 that require refiners to meet low-sulfur fuel specifications by 2023, which rendered most of the nation’s fleet obsolete, according to a lobby group representing the fuel manufacturers.

Shell said in 2020 that it was reviewing its shareholding in Sapref.

source:Shell confirms plan to ditch South Africa – Daily Investor