Shell, Vitol and Helios have entered into exclusive negotiations for the potential joint acquisition by Vitol Group and Helios Investment Partners of equity in Shell’s downstream businesses in 19 countries in Africa.

Under the terms of the proposed deal, which would see the Shell brand and products remain in each country, Vitol one of the largest mutli-billion dollar oil conglomerate and Helios a renowned solar energy firm would become the majority shareholders in the businesses, with Shell retaining a shareholding.

Shell’s fuels, lubricants and refining activities in South Africa, its lubricants business in Egypt, its LPG businesses in South Africa and Botswana, and its exploration and production businesses, liquefied natural gas interests and most international trading activities in Africa are not in scope of the proposed deal.

A Shell statement issued in Nairobi on Wednesday said that all other downstream businesses in the 19 countries, including lubricants, are in scope.

However, Shell which did not disclose the countries said that details of the negotiations will remain confidential saying that a deal has not been reached noting that Shell will continue with the safe operation of the businesses.

This development follows a previous announcement by Shell that it is reviewing ownership options for the businesses in question, consistent with its strategy to refocus its global downstream footprint into fewer, larger markets.

Joseph Kimani