TotalEnergies has agreed to offload a minority stake in National Petroleum Refiners of South Africa (Natref) to energy company Prax Group.
Financial terms of the deal were undisclosed.
Natref is a joint venture between TotalEnergies Marketing South Africa (36.36%) and Sasol (63.64%).
Under the sales and purchase agreement, TotalEnergies will sell its 36.36% interest in the Natref refinery to Prax through its subsidiary TotalEnergies Marketing South Africa.
The transaction is subject to customary conditions, including securing the regulatory approvals, and other authorisations.
Located in South Africa’s Free State province Sasolburg, the Natref refinery supplies to the main inland market of the Johannesburg area.
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The refinery has a capacity of 108,500 barrels of oil per day.
The sale forms part of TotalEnergies’ efforts to divest its non-core assets.
TotalEnergies chief financial officer Jean-Pierre Sbraire said: “The transaction is in line with the company strategy to focus on its large integrated fuels and petrochemicals platforms and to divest its non-core assets.”
The acquisition from part of Prax’s international growth strategy and marks its entry into the South African market.
Prax Group chairman and CEO Sanjeev Kumar Soosaipillai said: “The signing of this agreement is the first step towards our entry into Africa.
“The acquisition marks another significant milestone for the Prax Group, and will create unique opportunities across the South African supply chain, meeting the needs of customers and communities for years to come.”
Recently, TotalEnergies divested its upstream assets in Canada to Suncor Energy.
The deal saw Suncor buy the entirety of TotalEnergies’ shares in TotalEnergies EP Canada.
Suncor now owns a 100% stake in Fort Hills in Alberta’s Athabasca region, 90km north of Fort McMurray.