South African Shell-BP Refinery Purchase Raises Clean-Up Concern

  • State-owned Central Energy Fund bought Sapref plant for a rand
  • The 180,000-barrel-a-day refinery has been shut since 2022

The Sapref refinery.

Photographer: Alexander Joe/AFP/Getty Images
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South Africa’s purchase of the nation’s largest refinery from Shell Plc and BP Plc for a symbolic rand (five US cents) will transfer the environmental liability of the site to the government, according to a local advocacy group.

The state-owned Central Energy Fund, which manages South African energy assets, agreed to buy the 180,000-barrel-a-day Sapref plant, the Department of Mineral Resources and Energy said on Saturday. The asset will support the CEF’s growth strategy following the decline of local refining capacity, according to the department.