bp and Shell agree to sell to CEF

bp and Shell agree to sell to CEF

bpSA (Pty) Ltd  in a statement announced that it has agreed to the sale of its 50% ownership of land and other associated assets at the SAPREF Precinct

According to bp, the deal follows successful negotiations, bp Southern Africa (Pty) Ltd (bpSA) and Shell Downstream South Africa (Pty) Ltd (SDSA), have reached an agreement for the sale of their respective 50% ownership assets located at the SAPREF Refinery 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 includes tanks, process units, pipelines to and from SAPREF to Island View terminal, and the Single Buoy Mooring for crude imports.

48 permanent employees of SAPREF who work at the refinery site together with 16 trainees will transfer with the business.

The sale excludes SAPREF (Pty) Ltd, bpSA’s marketing businesses, the Island View terminal Operations and the lubricants blending and grease manufacturer, Blendcor (Pty) Ltd.

The sale will be subject to all applicable regulatory approvals.

Taelo Mojapelo, bpSA Chief Executive Officer said: “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 CEF is well-placed to take SAPREF forward.”

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