Petroleum giant Shell is in negotiations to sell its retail and commercial businesses here, including around 160 service stations around the country.
In a statement issued yesterday, the company confirmed that it was in contact with a number of prospective buyers with the view to selling the business as a going concern.
The news comes as oil prices again hit $60 a barrel yesterday, extending a streak of record highs that have yet to curb robust US energy demand.
US crude futures traded up 10 cents to $59.50 a barrel, having touched $60 to match Thursday's record. London Brent crude rose seven cents to $58.03 a barrel.
A spokeswoman for Shell said that the company's natural gas project in Corrib, Co Mayo, which is part of Shell's exploration and production business in Ireland, would not be affected by any deal.
Shell's aviation, bitumen and chemicals businesses are also not for sale.
Sources said the Anglo-Dutch oil giant could expect to receive in excess of €100 million for the assets it is selling.
Dr Frank Bergin, director of Shell in Ireland, refused to comment on the identity of the potential buyer.
"For reasons of commercial confidentiality, we are not able to disclose these parties, or to discuss this matter in more detail at this time," he said.
"If we do decide to proceed with a sale, it would be Shell's intention to sell the business as a going concern."
It is understood that the eventual purchaser may well come from outside the ranks of those currently involved in the sector. In that event, it is possible that use of the Shell brand might be retained by the new owner.
He added that the announcement was consistent with the Shell Group's strategy of "more upstream and profitable downstream" activities and that Shell staff in Ireland were being kept informed of developments.
Shell, which has operated in Ireland for almost 100 years, directly employs 153 people in its oil products business in Ireland and more than 2,000 indirectly through its distribution and service station networks.
A further 45 staff are employed in Shell E&P, the company operating the Corrib Natural Gas Project currently under construction in Mayo. "This project will continue as planned," says the company.
Shell's departure from Ireland follows similar withdrawals from Portugal and Spain. The company set up its first headquarters in Ireland at Alexandra Road, Dublin in 1908 and built the country's first bulk terminal at Foynes, Co Limerick.
In 1922 an office was opened in Belfast.
Since 1997 the operations in the Republic and Northern Ireland have been integrated.
