Shell sells its interests in downstream oil to the State

Shell sells its interests in downstream oil to the State
Shell sells its interests in downstream oil to the State

(Ecofin Agency) – At the beginning of the month, Shell announced its intention to offload its holdings in the downstream segment of the oil and gas industry in South Africa in accordance with its energy policy.

The Anglo-Dutch oil group Shell has implemented its intention announced a few weeks ago to offload its interests in the downstream segment of the South African oil and gas industry via Shell Downstream South Africa.

According to information relayed on Tuesday May 28, the oil company has concluded an agreement to this effect involving its compatriot BP. The two companies have agreed to divest the 50% stake they each held in SAPREF, South Africa’s largest crude oil refinery, to the Central Energy Fund (CEF).

Through this deal, this public company established to support the security of South Africa’s energy supply sees various infrastructures associated with the processing, storage and importation of crude oil come into its possession.

However, the marketing operations of BP Southern Africa, the South African subsidiary of BP, the activities related to the Island View terminal as well as the lubricant and grease manufacturing operations of Blendcor are not included in the transaction which must yet to be approved by the authorities.

If for BP and Shell, this operation reflects the energy strategy that they are deploying in accordance with their ambitions in terms of energy transition, “the acquisition of these assets supports CEF’s investment and growth policy in the energy value chain” from South Africa.

Abdel-Latif Boureima

Read also:

08/05/2024 – Shell plans to withdraw from the downstream segment of the South African oil industry

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