Shell abandons shale projects in South Africa

Oil prices have declined by almost 50% since June meaning shale explorations and other high cost projects have been jeopardised.

"The reason to go to a low cost holding position [...] is as a result of a difficult period for world (prices)," Shell South Africa Chairman Bonang Mohale told Johannesburg station Talk Radio 702.

The South African government has come under scrutiny by oil firms for delaying issuing exploration licenses, with Shell, which has been waiting six years for a licence, citing regulatory uncertainty as a cause for concern.

"What is of concern is regulatory uncertainty," Mohale said.

"We have waited inordinately long for licenses."

Shell shares were up 0.78% to 1,936.25p at 10:41 on Monday.