South Africa’s state-owned Strategic Fuel Fund (SFF) has offered to purchase Chevron’s stake in the Chevron Cape Town Refinery. In January, Chevron announced its decision to solicit expressions of interest for the stake, a sale that would form part of a three-year asset divestment program that was announced two years ago.
Chevron South Africa operates a 110,000-barrel-per-day (bpd) refinery in Cape Town and a lubricant blending plant in the eastern port city of Durban. Chevron South Africa markets its products through more than 845 Caltex-branded service stations.
“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. SFF did not disclose its bid amount for the Chevron South Africa assets. The offer was made as part of its mandate to ensure a security of supply of liquid fuels, SFF said.
The Strategic Fuel Fund Association was established in 1964 as a Section 21 company. With the lifting of sanctions and the normalisation of international crude oil trade with South Africa, the role and activities of SFF have changed profoundly. Over the years, SFF has managed not only to generate net income for South Africa, but has also been able to finance the operating costs of maintaining the country’s strategic oil reserves.