S Africa, Sinopec Negotiate Chevron’s Refinery Capacity

S Africa, Sinopec Negotiate Chevron’s Refinery Capacity

The South African Economic Development Minister, Ebrahim Patel, said that South Africa is negotiating with the Chinese oil firm Sinopec about its acquisition of Chevron Corp’s Cape Town refinery to confirm that the production capacity of the refinery is maintained and improved, Reuters stated.

In March, the two companies announced that Sinopec will pay almost $1b to acquire a 75% stake in Chevron Corp’s South African assets and its subsidiary in Botswana to secure its first major refinery in Africa, Engineering News reported.

Patel stated to the media, “A key concern that government will raise in every major transaction like this is how to retain and expand our industrial capability and includes in this case, refinery capability.”

According to African Energy, Chevron South Africa’s assets cover the 100,000b/d Cape Town oil refinery, a lubricants plant in Durban, 820 petrol stations and oil storage facilities.

Under the sales agreement, Sinopec will hold 75% in Chevron South Africa, with the remaining 25% continuing to be held by a group of local shareholders in accordance with South African regulations.


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