South Africa’s CEF agrees to buy BP-Shell refinery

DURBAN, June 3, 2024 – South Africa’s state-owned Central Energy Fund (CEF) has agreed to purchase BP and Shell‘s 180,000-bpd SAPREF refinery in Durban, BP announced last week.

The 50-50 joint venture South African Petroleum Refineries (SAPREF) facility was idled in 2022. Although BP and Shell didn’t state a reason for the idling, it came after the release of strict new petroleum product specifications.

 

The purchase will include the facility’s processing units, along with crude oil and finished product tanks, pipelines connecting to the Port of Durban’s Island View terminal and offshore single-buoy mooring used for crude imports.

It will exclude bpSA’s marketing businesses, the Island View terminal operations and the lubricants blending and grease manufacturer, Blendcor.

Last month, Shell announced its intention to sell its shareholding in its Shell Downstream South Africa subsidiary, citing its “commitment to simplification, performance, and discipline.”