After more than a century of operations in South Africa, international oil giant Shell is reportedly preparing to exit the country, according to reports from City Press and Sunday Times.
The decision to withdraw allegedly stems from a dispute between Shell and its long-term Black Economic Empowerment (BEE) partner, Thebe Investment Corporation, regarding a substantial stake in Shell Downstream South Africa (SDSA) valued at R3.7 billion.
The conflict dates back to 2022 when Thebe notified Shell of its intention to exercise its “opt-out” clause and divest its stake to pursue other investment opportunities. Thebe submitted a valuation of its 28% stake in SDSA based on figures provided by Shell, valuing it at $200 million.
However, Shell reportedly remained silent on Thebe’s submission for eight months. When it eventually responded, Shell allegedly retracted its earlier figures and claimed that Thebe’s stake was essentially worthless.
Thebe shareholders have dubbed the situation “The Great Dutch Heist,” expressing feelings of being “robbed and used” by Shell. They suspect that Shell intentionally delayed its response to orchestrate its departure from South Africa.
Shell Downstream South Africa refrained from commenting directly on the matter, stating that it does not engage in speculation or rumours regarding confidential shareholder agreements. However, it emphasized its commitment to responsible communication and stakeholder engagement.
Shell has a significant presence in South Africa, operating over 600 forecourts nationwide and holding exploration rights granted by the Department of Mineral Resources and Energy. However, it has faced legal challenges, including a recent dispute over seismic surveys off the country’s east coast.
In September 2022, a South African court rejected Shell’s plan for oceanic seismic surveys, citing procedural irregularities in the exploration rights granted by the energy minister. The decision followed resistance from coastal communities, civil society groups, and environmental concerns about marine life.
