Oliver Meth
Shell and BP have halted operations at Sapref oil refinery in South Africa’s south Durban as the refinery considers selling off the plant.
The shareholders of the largest refinery in South Africa, made the announcement on Friday, citing they will wind up by the end of March.
Sapref, a 50/50 joint venture between BP and Shell, said the suspension of operations would not affect full-time employees and safety remains a primary consideration.
Shell SA Country Chairperson, Hloniphizwe Mtolo said the decision was a difficult one for shareholders.
“The shareholders will use other existing assets and trading arrangements to ensure ongoing security of fuel supply to the country and their consumers.”
Until a decision on the future of the plant has been made, BP and Shell are unable to commit to further investment in the refinery.
“This will be for an indefinite period, but with a restart possible in the future, including in the event of any future sale. The decision has been taken to allow an informed finalisation on the options available to shareholders, a sale option being the most preferred.”
BP South Africa said it will continue to pursue the sale of its shares in the refinery and put contingencies in place to ensure the decision does not affect customer-facing businesses in SA and the fuel supply obligations.
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