Photo by: Creamer Media
Global energy company TotalEnergies will sell its 36.36% interest in the Natref refinery in Sasolburg, in South Africa's Free State province, to fellow energy company Prax Group.
South African energy and chemicals group Sasol owns a 63.64% interest in the 108 500 bl/d refinery.
“The transaction is in line with the company strategy to focus on its large integrated fuels and petrochemicals platforms and to divest its noncore assets,” says TotalEnergies CFO Jean-Pierre Sbraire.
“The signing of this agreement is the first step towards Prax Group's entry into Africa. This will provide us a solid platform from which to execute our future growth strategy.
"The acquisition marks another significant milestone for the Prax Group, and will create unique opportunities across the South African supply chain, meeting the needs of customers and communities for years to come,” adds Prax Group chairperson and CEO Sanjeev Kumar Soosaipillai.
The Prax Group states that it has a proven record of operating, optimising and improving strategically important assets.
It views the acquisition of a stake in Natref as its entrance into the South African market and the next step in the company’s international growth strategy.
The group plans to improve the refinery’s competitive position through future strategic investment and says it is able to draw upon experience in technological upgrading to ensure stability and security of energy supply in South Africa through continuity of operations.