https://www.engineeringnews.co.za
Africa|Business|Energy|Pipelines|Refinery|Refining|SECURITY|Shell|Operations
Africa|Business|Energy|Pipelines|Refinery|Refining|SECURITY|Shell|Operations
africa|business|energy|pipelines|refinery|refining|security|shell|operations

bp, Shell agree to sell Sapref land, associated assets to the CEF

An image of the Sapref refinery

Sapref refinery

27th May 2024

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

Following successful negotiations, bp Southern Africa and Shell Downstream South Africa (SDSA) have reached an agreement for the sale of their respective 50% ownership of assets located at the Sapref refinery precinct, in KwaZulu-Natal, to South African State-owned entity the Central Energy Fund (CEF).

The sale includes SDSA and bpSA’s interests in the Sapref land and other associated assets, which includes tanks, process units, pipelines to and from Sapref to Island View terminal, and the Single Buoy Mooring for crude imports.

Forty-eight permanent Sapref employees, who work at the refinery site, together with 16 trainees, will transfer with the business.

The sale excludes bpSA’s marketing businesses, the Island View terminal operations and the lubricants blending and grease manufacturer, Blendcor.

The sale will be subject to all applicable regulatory approvals.

“We view this agreement as a positive outcome for bpSA, for South Africa’s fuel industry and for the country as a whole. Sapref is an important refinery, the largest in Southern Africa, but continued ownership does not fit with bp’s global strategy.

“Finding a buyer committed to the future of the refinery was an important consideration for us – we believe the CEF is well-placed to take Sapref forward,” says bpSA CEO Taelo Mojapelo.

“Sapref has played a significant role in relation to local energy security and economic development thanks to its extremely committed management team and staff.

“This transaction will allow the CEF to build on Sapref’s history and to invest in local refining going forward. SDSA will continue to manage local supply to customers through our extensive terminal network,” says SDSA country chair Aluwani Museisi.

Situated in Durban, Sapref was commissioned in 1963 as a 50:50 joint venture between bpSA and SDSA.

The refinery was severely impacted on by the April 2022 flooding in KwaZulu-Natal, leaving the refinery non-operational.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Latest News

Webber Wentzel senior associate Francois Sieberhagen
Opinion: Beware, but do not fear!
14th June 2024

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.376 0.43s - 174pq - 2rq
Subscribe Now