Global oil giant, Shell Plc, has opted to sell off its majority stake in a South African downstream subsidiary following an extensive evaluation of its operations globally.
This is contained in a statement issued on Monday by the energy company, according to a report by Reuters.
Shell Downstream SA (SDSA) was established when Shell South Africa and the black empowerment firm, Thebe Investment Corporation, decided to combine Shell South Africa Marketing and Shell South Refining businesses 10 years ago.
Thebe acquired a 28% equity share in the venture.
A decade later, Shell said it would still be exploring the country’s offshore, following pressures from opposition from environmental campaigners who launched a series of court action against the energy company.
It did not specify when the decision took effect.
Shell announced on Monday that during the divestment process, it would focus on maintaining SDSA’s operational effectiveness and preserving its brand identity.