Business Day: Shell SA in BEE talks on Sapref refinery: “Shell South Africa is at an advanced stage of discussions to sell 25% of its 50% holding in the Sapref refinery based in Durban…” (ShellNews.net)
Posted 5 Oct 04
Shell South Africa is at an advanced stage of discussions to sell 25% of its 50% holding in the Sapref refinery based in Durban to a black owned equity partner, according to CEO and Chairman Benny Mokaba.
Shell owns a 50% stake in Sapref in a private venture with BP Southern Africa.
It has already sold a 25% equity stake in its South African downstream marketing business to black equity partner Thebe Investments, as a step in meeting the 25% Black Economic Empowerment (BEE) equity target under the Liquid Fuels Charter agreed in 2000.
Speaking at the Africa Downstream Conference in Cape Town on Monday, Mokaba said Shell SA was "at the height of discussions" to sell 25% of its rights to Sapref to comply with the Liquid Fuels Charter. He declined to reveal the value of the transaction because of Sapref's status as a private company.
Mokaba also noted that Shell in partnership with BP was currently increasing its investment in the Sapref refinery in order to comply with the new clean fuels regulations that are due to take effect by 2006.
Sapref will probably be the first refinery with the new clean fuels regulations, Mokaba said - they will lower the sulphur content in diesel and the lead content in petrol.