South Africa May Limit Shell's Drilling Licenses After Its Downstream Exit – OilPrice.com

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Shell holds a majority share in Shell Downstream SA (SDSA), which was formed by the merger agreement between Shell South Africa and Thebe Investment Corporation a decade ago. The partnership was intended to merge Shell’s marketing and refining business, with Thebe, a black empowerment group, holding a 28% stake in the downstream business, as reported by Reuters.
According to the Daily Maverick, Shell and Thebe Investments are still in heated debate over the value of Thebe’s stake in the project.
“Shell has decided to reshape the Downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa (SDSA),” the oil giant said in a statement in response to Daily Maverick’s queries, adding that the decision followed a full review of “… the Downstream and Renewables businesses across all regions and markets in line with Shell’s focus on performance, discipline, and simplification”.
Following this announcement, South Africa’s Energy Minister Gwede Mantashe told Bloomberg “They still want to stay upstream, so what we should be doing, we should be more reluctant to grant licenses and permits, at that level, to Shell.”