Energy company, Shell Plc, has announced its decision to sell off its majority stake in the South African downstream subsidiary, Shell Downstream SA (SDSA).
The decision comes after conducting a thorough evaluation of its global operations.
Shell Downstream SA (SDSA) was established a decade ago when Shell South Africa and Thebe Investment Corporation, a black empowerment firm, decided to merge Shell South Africa Marketing and Shell South Refining businesses.
Thebe Investment Corporation acquired a 28% equity share in the venture.
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Despite the sale, Shell has expressed its interest in exploring the country’s offshore, though it has faced opposition from environmental campaigners who have launched a series of court actions against the energy company.
“As a result of this review, Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in SDSA … this decision was not taken lightly,” Shell said in a statement on Monday.
The company, however, did not specify the date when the decision took effect.
