Johnathan Paoli
The South African Federation of Trade Unions (SAFTU) has expressed shock at the recent reported plan of multinational oil giant Shell to leave the country following disagreements with its BEE partner, Thebe Investment Corporation.
SAFTU spokesperson Trevor Shaku said on Monday that the news came as a shock to the federation, but that the situation required guidance and assertive stability from the government.
“We think that the state has to step in to ensure that if Shell does leave, we are able to expand the ownership of liquefied energies in the country, as well as being able to expand the public ownership of the daily fuel, especially those which are consumed by the citizens,” Shaku said.
However, Shell SA spokesperson Pam Ntaka said that the company could not confirm or deny a potential exit from the company, due to the confidential nature of ongoing negotiations.
“As a matter of policy and principle, Shell Downstream SA distances itself from speculation or rumours, particularly in relation to confidential shareholder agreements and relationships. Out of respect for our partners and these agreements, we’re unable to provide any further comment currently,” Ntaka said.
Thebe’s decision in 2022 to exercise its pull and sell its 28% stake in Shell Downstream South Africa (SDSA) has caused a rift, with Shell being accused of undervaluing Thebe’s stake.
Thebe reportedly valued its portion at R3.7 billion, while Shell saw it as worth even less than the R1.3 billion, shareholders invested when the partnership began.
The British oil and gas company has operated in the country for 122 years and has been in partnership with Thebe Investment Corporation as its BEE partner for 22.
The energy giant announced its pull out from Nigeria earlier this year, with an agreement to sell its subsidiary in the country to a consortium for a reported R44 billion.
Last year, Volkswagen CEO Thomas Schafer also raised concerns regarding the future of the German automaker’s presence in the country, however the company has since then announced its investment of R4 billion in the Kariega assembly plant.
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