Department of Mineral and Petroleum Resources (DMPR) Minister Gwede Mantashe has welcomed the Competition Commission's approval for the Central Energy Fund (CEF) to acquire the various assets that comprise the SAPREF refinery. According to the company's website, the east coast based refinery is the largest crude oil refiner in the country. The department said the acquisition is the culmination of the 'Sale Purchase Agreement between bp Southern Africa (bpSA) and Shell Downstream South Africa (SDSA) assets located at the SAPREF Precinct' to the CEF. 'The sale includes the SDSA and bpSA interests in the SAPREF land and other associated assets, which includes crude and finished product tanks, process units, pipelines to and from 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 lubricants blending and grease manufacturer, Blendcor (Pty) Ltd. 'The acquisition of these asse ts will form the hallmark of CEF's investment and growth strategy in the energy value chain geared to lay a solid foundation to address the challenges that lies ahead in the security of South Africa's energy future,' the department said in a statement on Friday. The DMPR added 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 a t guaranteeing adequate supply of liquid fuels in the midst of premature closures of refineries. 'The acquisition of SAPREF, and its revitalisation thereof, will ensure that South Africa, through CEF, continues with the exploitation, development, and distribution of petroleum products,' the statement concluded. Source: South African Government News Agency
Mantashe welcomes decision on SAPREF asset acquisition
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