![Mantashe: SA should limit Shell's oil exploration after exit from petrol stations 1 Minister Gwede Mantashe. (Deaan Vivier/Netwerk24)](https://cdn.24.co.za/files/Cms/General/d/10596/7dd936fe26a047659bbd28a13871aaca.jpg)
Minister Gwede Mantashe. (Deaan Vivier/Netwerk24)
South Africa’s energy ministry is considering granting fewer oil exploration permits to Shell due to the company’s plans to exit the nation’s fuel-supply business. Shell is selling its stake in Shell Downstream South Africa, including 600 petrol stations, prompting discussions with Mineral Resources and Energy Minister Gwede Mantashe.
Mantashe expressed the need to be cautious in granting licenses to Shell for upstream activities. Shell has faced challenges in South Africa’s oil-exploration sector, with uncertainties in legislation and legal actions hindering its operations.
Furthermore, Shell has been evaluating the sale of its Sapref refinery and is working to preserve its branded service stations under new ownership. Mantashe highlighted potential geopolitical factors influencing the exit of western companies, emphasizing the importance of aligning terms with national interests.
The minister plans to address disputes between Shell and local equity partner Thebe Investment Corp. and reiterated the need for strategic discussions to safeguard South Africa’s energy sector.