The SAPREF refinery, South Africa’s largest, has undergone a significant change in ownership, marking a pivotal moment in the country’s energy landscape. Located in Durban, SAPREF has been a key player in South Africa’s fuel production and infrastructure since its establishment in 1963. Here’s what you need to know about its ownership and the implications of recent developments.
Past Ownership: BP and Shell Partnership
For decades, SAPREF was operated as a 50:50 joint venture between BP Southern Africa (BP SA) and Shell Downstream South Africa (SDSA). The refinery had a capacity of 180,000 barrels per day at its peak and played a crucial role in supplying the South African market with refined fuels. However, due to strategic shifts in their global business operations, both BP and Shell announced in 2022 that they would pause refinery operations and later sought buyers for their stakes.
Transition to State Ownership
In May 2025, BP and Shell finalized the sale of their respective 50% stakes in SAPREF to the South African government’s Central Energy Fund (CEF). The CEF is a state-owned entity tasked with securing and managing South Africa’s energy resources. This acquisition includes vital assets such as crude and product storage tanks, pipelines, and the Single Buoy Mooring for crude oil imports. However, it excludes certain other operations, like marketing businesses and lubricants blending.
Strategic Implications
This transition aligns with the South African government’s aim to bolster its control over strategic energy assets and ensure energy security. The CEF’s acquisition is seen as a move to invest in and modernize energy infrastructure, particularly in light of global shifts towards more sustainable energy solutions. It also reflects a broader push to retain critical industries under local ownership.
Looking Ahead
While the sale is subject to regulatory approvals, the transfer of SAPREF’s assets is expected to reshape South Africa’s energy sector. The government aims to address challenges such as fuel supply stability and infrastructural upgrades while exploring avenues to adapt to evolving energy demands.
In summary, SAPREF, once jointly owned by BP and Shell, is now under the ownership of South Africa’s Central Energy Fund. This change underscores the country’s strategic focus on energy independence and long-term sustainability. For more updates, follow developments in South Africa’s energy policies and SAPREF’s future role in the industry.