South Africa’s biggest fuel refinery is “stopping operations indefinitely”

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South Africa’s biggest fuel refinery is “stopping operations indefinitely”

SAPREF - the largest crude oil refinery in South Africa - has announced it is stopping operations for "an indefinite period".

 

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[Mista_Mobsta]

Have read through a couple of articles and still can't see the reason as to WHY Shell & BP have decided to sell their stake in SAPREF?
Economic conditions, labor issues, cost vs profit etc?

The only reason stated doesn't really convey the true reason for stopping services and trying to sell their stake in SAPREF?

The decision to stop operations at SAPREF was made to allow “an informed finalisation on the various options available to the shareholders”. This includes a sale – which is the most preferred option.

 

[ronz91]

Have read through a couple of articles and still can't see the reason as to WHY Shell & BP have decided to sell their stake in SAPREF?
Economic conditions, labor issues, cost vs profit etc?

The only reason stated doesn't really convey the true reason for stopping services and trying to sell their stake in SAPREF?

so they are not making enough money? that makes no sense to me

but what else could it be?

 

[Space]

….and then there was this news from PetroSA recently…

Unions object to PetroSA staff retrenchments | The Citizen

Unions Numsa and Ceppwawu are calling on Mantashe to stand up to International Oil Companies and save jobs in the sector.

amp.citizen.co.za

Have read through a couple of articles and still can't see the reason as to WHY Shell & BP have decided to sell their stake in SAPREF?
Economic conditions, labor issues, cost vs profit etc?

The only reason stated doesn't really convey the true reason for stopping services and trying to sell their stake in SAPREF?

there are 3 threads about this issue running in parallel on this forum;

the other 2 shed some light on your question, citing challenges with labour, the economy, loadshedding, and cost of refining fuel locally now exceeding the cost of bringing refined fuel in (absurd !)

South Africa’s biggest fuel refinery is “stopping operations indefinitely”

South Africa’s biggest fuel refinery is “stopping operations indefinitely” SAPREF - the largest crude oil refinery in South Africa - has announced it is stopping operations for "an indefinite period".

mybroadband.co.za

BP and Shell "pausing" production at Sapref - looking for buyer

South Africa's biggest fuel refinery is shutting down BP South Africa and Shell Downstream South Africa have announced they will pause operations at South African Petroleum Refineries (Sapref) in Durban by the end of March 2022. The two shareholders of the refinery will implement a spending...

mybroadband.co.za

 

[Mista_Mobsta]

….and then there was this news from PetroSA recently…

Unions object to PetroSA staff retrenchments | The Citizen

Unions Numsa and Ceppwawu are calling on Mantashe to stand up to International Oil Companies and save jobs in the sector.

amp.citizen.co.za

there are 3 threads about this issue running in parallel on this forum;

the other 2 shed some light on your question, citing challenges with labour, the economy, loadshedding, and cost of refining fuel locally now exceeding the cost of bringing refined fuel in (absurd !)
/snip

Thanks for the info! So in essence, Eskom, questionable management and labor issues ruined another entity?

Just funny how management of PetroSA didn't conduct a thorough energy risk assessment to their business and take steps to mitigate some of those risks?

Surely with Oil prices up around decade highs, their profitability shouldn't be in question? I genuinely love to learn how different companies and businesses manage their daily activities but it seems that bad management in various SOE's and Public Enterprises are to blame for kak decision making?