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.
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 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.
