By Lehlohonolo Lehana.
The Central Energy Fund (CEF) has received approval from the Competition Commission to acquire the assets of the defunct South African Petroleum Refineries (Sapref) Refinery.
This acquisition is seen as a strategic move to bolster South Africa’s energy security and create new economic opportunities.
CEF, a state-owned company, plans to revitalise the refinery and use its infrastructure to produce a range of petroleum products, including gasoline, diesel, and jet fuel.
Through its subsidiaries, PetroSA and Avedia Energy, the CEF already has experience in the energy sector.
This approval follows the completion of the sale purchase agreement between bp Southern Africa (bpSA) and Shell Downstream South Africa (SDSA), transferring assets located at the Sapref precinct to the State-owned CEF.
The transaction includes the SDSA and bpSA interests in the Sapref land and other associated assets, which include crude and finished product tanks, process units, pipelines connecting Sapref to Island View terminal, and the Single Buoy Mooring for crude imports.
The sale excludes Sapref (Pty) Ltd, BP’s marketing businesses, the Island View terminal operations and the Blendcor lubricants blending and grease manufacturing plant.
The acquisition marks a milestone in CEF’s investment and growth strategy in the energy value chain.
Mineral Resources and Energy Minister Gwede Mantashe has welcomed the Competition Commission’s approval of the CEF application to acquire the Sapref refinery.
Mantashe said, that the acquisition reinforces the country’s “concerted efforts aimed at guaranteeing adequate supply of liquid fuels in the midst of premature closures of refineries”.
“We] have 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 given the stubbornly high level of unemployment.
“Therefore, the commission’s approval is important because it does not only authenticate the acquisition but reinforce South Africa’s concerted efforts aimed at guaranteeing adequate supply of liquid fuels in the midst of premature closures of refineries, added Mantashe.