South Africa's Central Energy Fund acquires Durban refinery land, assets

CAPE TOWN, May 25 (Reuters) - South Africa's state-owned Central Energy Fund has acquired land and assets at the country's largest refinery which has been out of operation for the last two years, the energy ministry said on Saturday.

Oil major Shell said earlier this month that it would divest its majority shareholding from a local South African downstream unit after a comprehensive review of its businesses across all regions.

One of Shell Downstream SA's (SDSA) main assets was the 180,000 barrel per day refinery SAPREF, a joint venture between itself and BP in the east coast port city of Durban, which has stood idle since 2022 amid a spending freeze and subsequent flood damage.

"The sale includes the SDSA and bpSA interests in the SAPREF land and other associated assets, which include crude and finished product tanks, process units, pipelines to and from SAPREF to Island View terminal and the single buoy mooring for crude imports," a statement from the Department of Mineral Resources and Energy said.

The sale excludes terminal operations at the Island View depot and the lubricants blending and grease manufacturer, Blendcor, the department added.

South Africa, a net importer of refined petroleum products, has been seeking to invest in new refinery capacity for more than a decade to help overcome energy security challenges, worsened recently since the closure of its two largest refineries, both located in Durban. (Reporting by Wendell Roelf)

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