bpSA and Shell Downstream South Africa have agreed to sell half of their ownership at Sapref Refinery Precinct in SA to the state-owned Central Energy Fund.
The agreement was reached following successful negotiations between bp Southern Africa and Shell Downstream South Africa.
It stated that the two companies have reached an agreement for the sale of their respective 50% ownership assets. These are located at the SAPREF Refinery Precinct. They are sold to the South African state-owned entity, Central Energy Fund.
Sale includes the SDSA and bpSA interests in the SAPREF
“The sale includes the SDSA and bpSA interests in the SAPREF land and other associated assets. These include tanks, process units, pipelines to and from SAPREF to Island View terminal, and the Single Buoy Mooring for crude imports.
“Forty eight permanent employees of SAPREF who work at the refinery site together with 16 trainees will transfer with the business.
The sale excludes SAPREF, bpSA’s marketing businesses. It also excludes the Island View terminal Operations and the lubricants blending and grease manufacturer, Blendcor.
The sale will be subject to all applicable regulatory approvals.
“Taelo Mojapelo, bpSA Chief Executive Officer confirmed the sale. He said: “We view this agreement as a positive outcome for bpSA. Also for South Africa’s fuel industry and for the country as a whole.
In line with bp’s global strategy
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 CEF is well-placed to take SAPREF forward.”
In April, Sunday World reported that DP World, an Emirati multinational logistics company based in Dubai, United Arab Emirates, has acquired a majority stake in fuel retailer bpSA’s secondary transport operations.
The company specialises in cargo logistics, port terminal operations, maritime services, and free trade zones. It has acquired key assets of bp Southern Africa’s (bpSA) secondary transport operations. This marks a significant expansion of its business in South Africa.
Global energy giant
As a global energy giant, bpSA has operated in Africa for over 100 years. This through operations from exploration to refining and fuel product distribution. bpSA has over 500 retail stations.
