Oil major Shell has signed an agreement with Vitol Africa BV to sell its 20% shareholding in Vivo Energy for $250million.
The completion of the transaction is expected in the first half of next year.
The sale is in line with Shell’s strategy to concentrate on its downstream operations where it can be most competitive.
A spokeswoman for Shell said as part of the transaction a long-term licence agreement has been renewed with Vitol to ensure the Shell rand will remain visible in more than 16 countries across Africa.