Chairperson of the Portfolio Committee on Mineral Resources & Energy, Sahlulele Luzipo, yesterday said Shell’s decision to divest from SA is a matter of concern and is not ideal as it comes at the end of their term.

As previously reported, Shell Plc has confirmed weekend media reports that it plans to divest from SA which will entail the sale of its downstream assets.

The global oil giant’s planned sale has sparked a row over the value of its BEE partner’s stake in it.

The London-headquartered company is locked in a battle with its BEE partner, Thebe Investment, over what Thebe says is a R3.7bn share of the multinational’s SA interests.

EWN reports that Luzipo said the decision was part of a trend by the company to scale down its operations on the continent: ‘Any company leaving SA every time when we need investment the most is a matter of concern. I think it would be irresponsible for any individual to create an impression that it is immaterial.’

Cosatu that it was also concerned about possible job losses as the energy giant plans to exit its downstream business, which operates about 600 service stations or forecourts around the country.

Spokesperson, Matthew Parks, said that if Shell proceeded, measures must be put in place to protect local jobs.

Full EWN report