{"id":853616,"date":"2026-03-15T17:00:00","date_gmt":"2026-03-15T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=853616"},"modified":"2026-03-13T16:57:48","modified_gmt":"2026-03-13T14:57:48","slug":"end-of-an-era-still-coming-for-600-petrol-stations-after-124-years-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/853616\/end-of-an-era-still-coming-for-600-petrol-stations-after-124-years-in-south-africa\/","title":{"rendered":"End of an era still coming for 600 petrol stations after 124 years in South Africa"},"content":{"rendered":"\n

Shell has confirmed that it is still engaged in the sale of its downstream assets in South Africa, which include a network of nearly 600 petrol stations. <\/p>\n\n\n\n

If the sale is ever concluded, it would mark the end of well over a century of Shell petrol stations operating in South Africa.\u00a0<\/p>\n\n\n\n

In 2024, Shell said<\/a> in a statement that it has decided to reshape the downstream portfolio and intends to divest its shareholding in Shell Downstream SA (SDSA).<\/p>\n\n\n\n

The company said at the time it wanted to reduce its downstream exposure globally to focus on its upstream business, exploration and the extraction of crude oil, natural gas and natural gas liquids.<\/p>\n\n\n\n

At the time, it was reported that Shell\u2019s assets were priced at around $1 billion, or roughly R16.4 billion at the time of writing this article.<\/p>\n\n\n\n

Almost two years later, there has been no update or announcement on the sale of Shell\u2019s assets in South Africa. However, SDSA confirmed to BusinessTech that it is still in the process of selling those assets.  <\/p>\n\n\n\n

\u201cShell Downstream South Africa (SDSA) confirms that the divestment process remains underway,\u201d they said. <\/p>\n\n\n\n

\u201cAs a matter of policy and principle, we do not disclose information related to confidential commercial processes.\u201d<\/p>\n\n\n\n

Although this does not provide much beyond the fact that the assets are still in the process of being sold, it was reported last year that there are multiple international bidders.<\/span> <\/p>\n\n\n\n

Bloomberg reported that Abu Dhabi National Oil Co. and Swiss commodities trading firm Gunvor are among the companies that were shortlisted to buy Shell\u2019s downstream assets.<\/p>\n\n\n\n

Previous potential bidders also included Trafigura\u2019s Puma Energy, Sasol, and South Africa\u2019s PetroSA, although people familiar with the matter said at the time that they are no longer in the running.<\/p>\n\n\n\n

In 1902, Shell opened its doors in South Africa. Back then, the company supplied oil to bring light and heat to the homes in the country.<\/p>\n\n\n\n

Part of a global shift in operations <\/h2>\n\n\n
\n
\"\"<\/a>
The Shell emblem from 1900 to the present<\/em><\/figcaption><\/figure><\/div>\n\n\n

Today, Shell has grown from being an oil company to being an energy and petrochemical giant.<\/p>\n\n\n\n

The Outlier reported<\/a> that Shell owns about 40,000 fuel service stations worldwide, half of which are in the Americas.<\/p>\n\n\n\n

There are 591 retail outlets in South Africa, the thirteenth-most among the 61 countries where the petroleum giant has a presence.<\/p>\n\n\n\n

Its refinery in Durban has been inactive since the end of March 2022, when it was decided to suspend operations and spending. A month later, floods severely damaged the plant.<\/p>\n\n\n\n

South Africa is not unique. Shell\u2019s divestment from the country is part of a comprehensive review of its global operations.<\/p>\n\n\n\n

Shell has sold downstream assets in Australia, Botswana, Burkina Faso, C\u00f4te d\u2019Ivoire, Guinea, Kenya, and Namibia.<\/p>\n\n\n\n

The company has also been scaling down activity in Malaysia, Uruguay, Paraguay, and Colombia.<\/p>\n\n\n\n

Following the announcement of their exit, Peter Morgan, CEO of the Liquid Fuels Wholesalers Association of South Africa, said<\/a> that he believes Shell\u2019s departure will have little impact on the domestic fuel industry.<\/p>\n\n\n\n

The expert expects that Shell will likely leave behind a smaller sub-brand in the country called Viva Energy and retain a minor stake in the fuel franchise while finding an outside investor to take on majority ownership.<\/p>\n\n\n\n

Viva Energy is one of Australia\u2019s top fuel retailers and enjoys the sole rights to sell Shell-branded petrol, diesel, and lubricants in the Oceanic nation.<\/p>\n\n\n\n

Should Viva come to South Africa, it will likely take over Shell\u2019s well-established infrastructure and continue serving its clients without too many hiccups along the way.<\/p>\n\n\n\n

It was also reported that Shell is working with adviser Rothschild & Co to find a buyer, but while talks are continuing, there\u2019s no certainty there will be a final sale.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shell has confirmed that it is still engaged in the sale of its downstream assets in South Africa, which include a network of nearly 600 petrol stations.\u00a0<\/p>\n","protected":false},"author":92,"featured_media":853637,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[9872],"tags":[22334,20687,2239,24980],"class_list":["post-853616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-gunvor","tag-petrol-stations","tag-shell","tag-shell-downstream-south-africa-sdsa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=853616"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853616\/revisions"}],"predecessor-version":[{"id":853643,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853616\/revisions\/853643"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/853637"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=853616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=853616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=853616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}