The Black Busines Council Welcomes The Acquisition Of SAPREF By Central Energy Fund

The Black Business Council (BBC) welcomes the recent sale of the 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, the Central Energy Fund (CEF) SoC Ltd.

As part of the sale purchase agreement, CEF has agreed to acquire from bpSA and SDSA, ownership interests of the crude oil and finished product tanks, as well as pipelines connecting the SAPREF refinery to the Port of Durban’s Island View terminal and offshore single-buoy mooring used for crude imports. The sale, which is still subject to regulatory approvals, exclude bpSA’s marketing businesses, other Island View terminal operations, and the bpSA-SDSA 50-50 JV Blendcor (Pty) Ltd’s lubricants blending and grease manufacturing business.

The successful conclusion of the deal will go a long way in creating opportunities by government towards supporting black industrialists by paving their involvement in the productive sectors of the economy. It is also important to note that this acquisition and the bringing back of the SAPREF refinery has important implications for the commercial sustainability of the Natref Refinery from a synergies standpoint of the co-sourcing and co-loading of feedstock.

Not only does the SAPREF acquisition ensure the security of energy supply for South Africa, it also represents a monumental opportunity for black businesses as the inclusion of black people in the mainstream economy will create jobs and enhance living conditions for all South Africans.

With South Africa’s refining capacity at risk, the BBC hopes that the competition commission process will be run smoothly so that the actual work of bringing back refining capacity can start. We hope that the South African State will support CEF through availing all associated infrastructure owned by other state-owned enterprises such as Island View tanks, and all associated infrastructure and land parcels to support the progressive move by CEF in order to support the reindustrialisation of the South African economy.

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Author: Kganki Matabane from The Black Business Council on behalf of The Black Business Council.

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