South Africa's Strategic Fuel Fund bids for Chevron refinery
(Reuters) South Africa's state-owned Strategic Fuel Fund (SFF) said on Wednesday it had offered to buy Chevron's majority stake in the country's oil refinery in Cape Town and other downstream assets, as well as those in neighboring countries.
"SFF has forwarded a commercial offer to Chevron and its financial advisers, in relation to the purchase of the 75% interest on offer," the company said in a statement.
The SFF said it would purchase 75% of the refinery and assets such as retail stations and depots for an undisclosed amount.
The SFF said its offer was made as part of its mandate to ensure a security of supply of liquid fuels.
Chevron said in January it would sell its business in Africa's most industrialized country after disposing of assets in Nigeria, in sales triggered by plunging oil prices.
The US oil major is a leading refiner and marketer of petroleum products in South Africa, where it has had a presence for more than a century. The refinery processes 110 Mbpd.
Besides the Cape Town refinery, Chevron also has interests in a lubricants plant in Durban on the east coast. Its network of Caltex service stations makes it one of South Africa's top five petroleum brands, according to its website. South Africa's energy department said on Thursday the state-owned Strategic Fuel Fund's (SFF) had not been cleared to make an offer to buy 75% of Chevron's refinery and other downstream assets.
"An offer to purchase by an entity of the Department of Energy requires express consent from the Minister of Energy as the ultimate Shareholder representative. This was neither sought nor obtained," Director-General at the energy department Thabane Zulu said in a statement.
Reporting by Zandi Shabalala and Wendell Roelf with additional reporting by Tiisetso Motsoeneng; Editing by Alexander Smith, Sandra Maler and James Macharia
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