The Minister of Mineral Resources and Energy, Mr. Gwede Mantashe, has welcomed the conclusion of the Sale Purchase Agreement between bp Southern Africa (Pty) Ltd (bpSA) and Shell Downstream South Africa (Pty) Ltd (SDSA) assets located at the SAPREF Precinct to the South African State-owned entity, Central Energy Fund SOC Ltd (CEF).
The sale includes the SDSA and bpSA interests in the SAPREF land and other associated assets, which include crude and finished product tanks, process units, pipelines to and from SAPREF to Island View terminal, and the Single Buoy Mooring for crude imports.
However, the sale excludes SAPREF (Pty) Ltd, bp’s marketing businesses, the Island View terminal Operations and the lubricants blending and grease manufacturer, Blendcor (Pty) Ltd.
Acquisition of these assets will form the hallmark of CEF’s investment and growth strategy in the energy value chain geared to lay a solid foundation to address the challenges that lie ahead in the security of South Africa’s energy future.
Entrusted with the responsibility of securing energy supply to power the South African economy, the Department of Mineral Resources and Energy (DMRE) has seriously noted with concern the declining local refining capacity, which resulted in the country becoming a net importer of refined petroleum products.
This new emerging trend was not only threatening the country’s economic stability and security of supply of petroleum products, but also meant the exportation of jobs that are so needed in the country.
We wish to acknowledge the tireless efforts of the negotiating teams for working around the clock in concluding the deal despite several setbacks (such as the KZN floods) which were beyond their control.
For enquiries: mediadesk@dmre.gov.za
