A RECOVERY roadmap for how the oil refinery in Prospecton will be brought back to full production has been laid out by the State-owned Central Energy Fund (CEF), which bought and renamed Sapref.

The strategy was laid out by CEF’s group CEO, Dr Tshepo Makoka, as he addressed community stakeholders in Durban on September 9.

Also read: Sapref sold for R1

Now known as the SA National Petroleum Company (SANPC), the Prospecton-based plant currently serves as a storage facility for imported fuel. In its heyday, the plant had a refining capacity of 180 000 barrels per day, accounting for 35% of the country’s fuel production capacity. It ceased refinery operations in 2022 after floods damaged it beyond repair. The refinery’s ownership changed hands from joint owners BP and Shell to the CEF in 2024 after a voetstoots price of R1 was agreed on.

Mokoka said SANPC is positioned as an important component of the country’s long-term energy security and economic development.

“South Africa cannot afford to lose sight of the strategic importance of domestic refining capacity. Our objective is not simply to rebuild an asset; it is to contribute to energy security, industrial capability, economic growth, and meaningful opportunities for the communities surrounding this strategic infrastructure,” said Mokoka.

Also read: Environmentalists protest outside Sapref

CEF’s roadmap consists of a phased approach aimed at creating value in the short term while building towards full-scale refining capability of up to 650 000 barrels per day.

While the longer-term redevelopment progresses, CEF is pursuing opportunities to unlock value from infrastructure already available at the site. These include the leasing of storage capacity, reinstatement of the liquefied petroleum gas infrastructure, blending operations, commercialisation of laboratory services, and a controlled trading programme. Mokoka said the CEF will continue engaging with communities, government, organised labour, business, civil society, and other stakeholders as the refinery redevelopment programme progresses.

Recovery roadmap

Phase 1 – Bridge with imports:
CEF will seek to utilise existing tanks and transfer infrastructure to support the importation of fuel, helping to strengthen security of supply while creating a pathway towards commercial sustainability.

Phase 2 – Base refinery redevelopment:
The next phase will focus on rebuilding refining capacity, with a targeted throughput of about 400 000 barrels per day.

Phase 3 – Full-scale operation:
The longer-term objective is to achieve refining throughput of 400 000 to 650 000 barrels per day, subject to the required investment, approvals, and project milestones. This phase could create 16 220 jobs in the value chain and contribute R16b to the GDP.

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