BP Southern Africa and Shell Downstream SA (SDSA) have reached an agreement for the sale of the SAPREF precinct in Durban to the South African state-owned entity, Central Energy Fund (CEF).
The sale includes the SDSA and bpSA interests in the SAPREF land and other associated assets, including tanks, process units, pipelines to and from SAPREF to the Island View terminal, and the Single Buoy Mooring for crude imports.
The sale will be subject to all applicable regulatory approvals and the parties have opted not to disclose the commercial terms.
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 CEF to build on SAPREFs history and to invest in local refining going forward. SDSA will continue to manage local supply to customers through our extensive terminal network, says Aluwani Museisi , Country Chair of SDSA.
Established in 1963 and situated on the east coast of South Africa, SAPREF was the largest crude oil refinery in the country with 35% of South Africas refining capacity processing 24 000 tons of crude oil per day. The refinery was severely impacted by the Kwa-Zulu Natal flooding in April 2022, which led to the refinery being non-operational.
Forty-eight permanent SAPREF employees who work at the refinery site, along with 16 trainees, will also transfer to the CEF.
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