Shell plc has reaffirmed plans to divest its downstream business in South Africa, a move that could bring an end to its fuel retail presence in the country after more than a century.

The company is seeking buyers for Shell Downstream South Africa, which operates close to 600 petrol stations nationwide. If the deal is finalised in 2026, it would conclude a market presence that dates back to 1902, when Shell first began supplying petroleum products in the country.

The divestment plan was initially disclosed in 2024 following a strategic review of Shell’s global operations. Since then, the company has been working to reduce its exposure to downstream activities and shift focus toward upstream operations such as oil and gas exploration.

While the sale has not yet been completed, Shell confirmed that the process remains ongoing, with details kept private due to commercial considerations.

Several international firms have shown interest in acquiring the assets, including Abu Dhabi National Oil Company and Gunvor Group. Other companies such as Puma Energy, Sasol, and PetroSA were previously linked to the deal but are reportedly no longer in the running.
The assets were valued at about $1 billion when the sale process began in 2024.

South Africa’s fuel retail sector remains highly competitive, with major players like BP, TotalEnergies, Engen Petroleum, and Astron Energy operating extensive networks across the country.

Despite the planned exit from retail operations, Shell is expected to continue offshore exploration activities in South Africa, even as some projects face environmental scrutiny.