Shell’s vast fuel retail network in South Africa is up for grabs. (Andrey Rudakov/Bloomberg)
Shell’s plan to exit its downstream business in South Africa has called into question who, if anyone, has the appetite and financial might to acquire the business. The operating environment may be unattractive to oil majors, but the assets are expected to pique the interest of multinational traders, who have already established themselves as major role players in the country’s fuels market.
Shell has not been terribly forthcoming about its reasons to divest from Shell Downstream South Africa, save to say the decision was “not taken lightly” and followed a comprehensive review of the downstream and renewables businesses across all regions. At a group level, Shell has clearly articulated its future strategy is to focus on new oil and gas resources.
Soaring imports
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