Shell selling investment in Zimbabwe

Shell, which has a 50 percent stake in the Zimbabwean joint venture with BP PLC, began reviewing its holding last October 2007, before Zimbabwe underwent a disputed and violent presidential election, company spokesman Rainer Winzenried said as he confirmed the sale Tuesday.

Winzenried declined to say how much the sale was worth. He said Shell had no staff on the ground and that the holdings include about 230 retail sites. Shell has no other operations in Zimbabwe, he said.

It was unclear whether the sale was linked to specific economic or political developments.

"It's part of our revision of our downstream activities. We already started to look for buyers last year," the spokesman said.

Zimbabwe's politics have been turbulent for years, partly fueled by public discontent over the world's highest inflation rate.

Engen, which is South Africa's largest company for refined petroleum, said last week it had confidence in Zimbabwe's economic future.

"While Zimbabwe's economy has declined sharply over the last decade, it still has good infrastructure which we believe will form the basis of renewed economic growth, once the current political situation is resolved," the statement quoted chief executive Rashid Yusof as saying.

Engen is 80 percent owned by Malaysia's national oil company Petronas and 20 percent owned by Worldwide Africa Investment Holdings of South Africa.

The sale still requires approval from the Zimbabwe government, but Shell said it expects the deal to be finalized later this year.