Following consultation with government, unions, and employees, SAPREF shareholders (bp Southern Africa and Shell Downstream South Africa) have today announced that they will commence with a spend freeze and pause refinery operations at SAPREF no later than the end of March 2022.
This will be for an indefinite period but with a re-start possible in the future, including in the event of any future sale.
The decision has been taken to allow an informed finalization on the various options available to the shareholders, a sale option being the most preferred. Until decisions about the future of the plant have been made – including a possible change of ownership – the SAPREF shareholders are unable to commit to further investment in the refinery.
The decision to pause refinery operations currently has no impact on full time employees, and safety remains a primary consideration.
Moving forward, the shareholders will use other existing assets and trading arrangements to ensure ongoing security of fuel supply to the country and their consumers.
bpSA CEO Taelo Mojapelo said: “Over the many decades since its establishment, SAPREF has made immense economic contributions at both a local and national scale. For this reason, we continue to pursue the sale of our share in the refinery so that it can continue to advance its legacy as a reliable, safe and productive asset.
Notes to editors
bpSA has operated in Southern Africa for over 100 years, with a footprint of over 500 branded retail service stations in South Africa and core convenience offerings through Wild Bean Café and Pick n Pay Express. bpSA has invested in six fuel storage terminals, two of which are 100% bpSA owned.
Established in 1963, SAPREF is the largest crude oil refinery in South Africa with 35% of the country’s refining capacity. It is co-owned as a joint venture by bp Southern Africa and Shell Refining South Africa (“SAPREF Shareholders”).
The refinery has been a major contributor towards the socio-economic development of the country for 59 years, refining essential products that include petrol, diesel, jet fuel, lubricating oil, liquid petroleum gas, paraffin, solvents, bitumen, marine fuel oil and chemical feed stocks.
Further information
Find more information about bp Southern Africa click here. Find out more about SAPREF through their website.
bpSA Communications & Advocacy office, Johannesburg 063 196 2289 or Nelisiwe.Masina@bp.com