Three global fuel companies, BP, Shell, and TotalEnergies, are either downsizing their operations in South Africa or have completely pulled out of the country.
The company spent billions finding significant oil reserves off the coast of South Africa but doubts their commercial viability due to the country’s low demand for fossil fuels. This announcement follows the company’s decision to sell its stake in the Natref Refinery, aligning with its strategy to divest non-core assets that are no longer economically viable.
BPSA also sold its jet fuel business in South Africa and its stake in the Sapref Refinery, citing reasons similar to those of Shell.This move followed the complete cessation of jet fuel operations in South Africa at the beginning of 2023.From 1 May 2023, BP ceased aviation activities at OR Tambo and King Shaka International Airports, and Sterling cards will no longer be accepted at these hubs, along with East London.
This also resulted in a decline in the value of private projects planned for South Africa, such as Total, Shell, and BPSA. Global oil giants have also reduced their operations in the country due to economic challenges and investor pressure to reduce costs amidst declining demand for fossil fuels.