Shell pulls back from shale in South Africa

Shell pulls back from shale in South Africa

REUTERS:Loni Prinsloo,16 März 2015

Multinational oil and gas company Royal Dutch Shell is pulling its top shale-gas man out of South Africa, an indication that companies are growing increasingly frustrated with government delays over shale-gas legislation.

This week, Business Times was told that Jan-Willem Eggink — whom Shell sent to South Africa from Libya to monitor South Africa‘s shale gas opportunity — would be pulled out of the country in coming weeks. Other highly skilled staff would follow him.

“While government is sitting around farting, these companies are shifting their money away from South Africa and our economy will lose billions,” said a member of parliament, who declined to be named.

Shell said on Friday that as part of a review due to falling oil prices, the company had adjusted its activities in shale oil and gas opportunities outside of the Americas.

It also said it had adjusted staffing in local exploration in South Africa. The company said it needed clarity on legislation and technical regulations in the country before making any further decisions.

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