Shell exit will NOT mean job losses, argues fuel sector expert
After over a century of operating in Africa's most developed country, oil giant Shell is to leave SA.
Shell petrol garage fuel
Lester Kiewit speaks to Peter Morgan (CEO of the Liquid Fuels Wholesalers Association of SA) about the effects on the sector and country, as Shell prepares to leave South Africa after more than a century of operations here.
Listen to the full interview below.
Shell is to bid farewell to South Africa.
"Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa (SDSA)," read a statement by the company.
The move marks the end of the multinational oil and gas company's 120-year presence in South Africa where it operates more than 500 service stations.
The decision is reportedly linked to a dispute with its BEE partner Thebe Investment Corporation over its 28% stake in the company.
Peter Morgan, who worked at Shell for 25 years, says he's surprised by recent media reports, arguing that the divestment is unlikely to lead to job losses or the closing of service stations.
"The company I worked for would never have even spoken out [about] what's been [said] in the press. We had four things that were non-negotiable. It was safety, social investment, training, and the environment. Pricing came second or third."
- Peter Morgan, CEO - Liquid Fuels Wholesalers Association of SA
Shell has declined to comment on speculation regarding the disagreement with Thebe saying in a statement:
"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."
Morgan says he does not know whether the relationship between Shell and Thebe is behind the divestment move.
"...the argument between Thebe and Shell, I don't think we have enough information on that to be able to make any final decisions."
Peter Morgan, CEO - Liquid Fuels Wholesalers Association of SA
Morgan says there is no reason for South Africans to panic.
"I don't understand why there's such a focus on Shell when others have done it already and it hasn't even made a ripple in the market."
- Peter Morgan, CEO - Liquid Fuels Wholesalers Association of SA
"They're not going to close down their retail network... they're not closing their stations and going away [but] you won't see the Shell brand."
- Peter Morgan, CEO - Liquid Fuels Wholesalers Association of SA
"If I look at what Shell have done in the rest of Africa... they will go, but will leave behind a smaller sub-brand call Vivo. They will find an 80% partner and keep 20%."
- Peter Morgan, CEO - Liquid Fuels Wholesalers Association of SA
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Scroll up to the audio player to listen to the interview.