• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, October 7, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

South Africa Grants Oil Majors Long-Term Lease Access

Lawrence Ankutseby Lawrence Ankutse
September 16, 2025
Reading Time: 3 mins read
Lawrence Ankutseby Lawrence Ankutse
in Extractives/Energy
0
South Africa Grants Oil Majors Long-Term Lease Access

South Africa has granted major international oil firms extended access to its most critical fuel hub, resolving years of uncertainty that threatened investment and supply stability. The decision, confirmed by the national fuels body, applies to energy giants including BP and Vitol, and marks a significant shift in the country’s approach to fuel infrastructure management.

Minister Barbara Creecy approved the lease extensions at Durban’s Island View Precinct following a request from the Fuels Industry Association of South Africa. Using Section 79 of the National Ports Authority Act, the minister exercised her power to override conventional procedures, citing the move as necessary in the national interest.

Minister Barbara Creecy
Minister Barbara Creecy

Island View Precinct, part of the Durban port on the east coast, serves as the country’s main petrochemical hub and storage facility. Roughly 70% of South Africa’s fuel imports pass through the terminal, making it vital for supply security and trade flows.

RelatedPosts

COMAC Probes into Alleged Manipulation of Fuel Consumption Data 

Petroleum Hub is the Quintessential 24-Hour Economy Initiative – PHDC CEO 

Ghana Showcases Energy Sector Transparency at Global Summit in Spain 

Fani Tshifularo, chief executive of the Fuels Industry Association, welcomed the decision. “The Section 79 letter was issued to our members … It is in our favour. Remember, we wanted a long-term tenure, so we got that,” he said.

A BP spokesperson confirmed that approval had been granted to Sapref Pty Ltd, a joint venture with Shell. The entity shifted focus to fuel imports at Island View after halting refinery operations in 2022 and later selling the plant to the state-owned Central Energy Fund.

Engen, majority-owned by Vitol, also acknowledged that the minister had approved access under certain conditions but declined to disclose specifics.

Lease Deal Sparks Negotiations Over Refining Future

Tshifularo noted that “for my members, I know that there are 25-year lease negotiations that are going to commence with Transnet National Ports Authority (TNPA).” A transport ministry spokesperson declined to provide details, saying a formal statement would be released in due course. Transnet itself said it would respond later.

The Central Energy Fund, which has lodged its own Section 79 application, did not comment on how the ruling could impact its strategy. The Fund has been exploring ways to revive the Sapref refinery, damaged during past flooding, while also strengthening its oil trading division through its subsidiary SANPC.

South Africa now imports the largest volume of refined fuel products in Africa, overtaking Nigeria in 2025. The country is projected to import nearly 15 million tons of fuel this year—almost double the amount Nigeria brings in. Nigeria’s reliance on imports has eased following domestic refining expansions, including the opening of the Dangote Refinery.

The country’s dependence on imports is largely the result of shutdowns and delays in upgrading domestic refineries. Local production shortfalls have forced South Africa to rely more heavily on foreign suppliers, with fuel imports accounting for around 19.4% of total merchandise imports.

Durban’s Island View Precinct has become central to managing this dependence, as it handles roughly 70% of imports flowing into the country. Granting long-term leases to global companies such as BP and Vitol is part of a wider government strategy to bolster investment and ensure consistent supply.

In 2024, key fuel import sources included Oman, India, Saudi Arabia, and the United Arab Emirates, with billions in trade value exchanged. Rising import bills underscore the vulnerability of South Africa’s fuel market to global crude prices, shipping costs, and supply chain disruptions.

The government has paired the lease approvals with efforts to stabilize the fuel sector more broadly. These measures include policy reforms, monthly fuel price adjustments aligned with international benchmarks, and infrastructure investments designed to strengthen resilience.

Industry stakeholders say these moves reflect an urgent balancing act: meeting immediate national demand while also addressing long-term energy security challenges. For now, granting extended leases at Island View signals a commitment to protecting the country’s fuel lifeline and encouraging fresh investment in a sector under growing pressure.

READ  ALSO: Brako-Powers Dismisses Claims of GBA Partisan Bias

Tags: BPCentral Energy FundIsland View PrecinctSouth Africa fuel importsVitol
Please login to join discussion
Previous Post

EPA Warns Galamsey Crisis Fueled by Local Networks

Next Post

NDC Urged to Welcome Criticisms on Galamsey

[mc4wp_form id="1264"]

Related Posts

Government to Roll Out ‘Nkukor Nkitinkiti’ Programme in October
General News

IMANI Warns of Poultry Waste Risk Without Processing Plan Under Nkoko Nkitinkiti Programme

October 7, 2025
International Backlash Mounts Over Israel’s Gaza City Takeover Plan
Asia

From October 7 To Gaza’s Ruins: Scars Run Deep On Both Sides As War Hits Two-year Mark

October 7, 2025
Ghana’s Minister for Communications, Digital Technology and Innovation, Hon. Samuel Nartey George
General News

IMANI Challenges Minister’s Claim of ‘Increased Value Offer’ in DStv Deal

October 7, 2025
Petrol, LPG Prices to Rise Slightly from August 16, Diesel to Drop – COMAC 
Extractives/Energy

COMAC Probes into Alleged Manipulation of Fuel Consumption Data 

October 7, 2025
Over GH¢39 Million Worth of Shares Change Hands in Explosive Trading Session
Securities/Markets

Over GH¢39 Million Worth of Shares Change Hands in Explosive Trading Session

October 7, 2025
Flight Lands Early After Masked Passenger Raves About Gay People
Oddities

Flight Lands Early After Masked Passenger Raves About Gay People

October 6, 2025
Government to Roll Out ‘Nkukor Nkitinkiti’ Programme in October
General News

IMANI Warns of Poultry Waste Risk Without Processing Plan Under Nkoko Nkitinkiti Programme

by Silas Kafui AssemOctober 7, 2025
International Backlash Mounts Over Israel’s Gaza City Takeover Plan
Asia

From October 7 To Gaza’s Ruins: Scars Run Deep On Both Sides As War Hits Two-year Mark

by Comfort AmpomaaOctober 7, 2025
Ghana’s Minister for Communications, Digital Technology and Innovation, Hon. Samuel Nartey George
General News

IMANI Challenges Minister’s Claim of ‘Increased Value Offer’ in DStv Deal

by Evans Junior OwuOctober 7, 2025
Petrol, LPG Prices to Rise Slightly from August 16, Diesel to Drop – COMAC 
Extractives/Energy

COMAC Probes into Alleged Manipulation of Fuel Consumption Data 

by Prince AgyapongOctober 7, 2025
Over GH¢39 Million Worth of Shares Change Hands in Explosive Trading Session
Securities/Markets

Over GH¢39 Million Worth of Shares Change Hands in Explosive Trading Session

by Stephen M.COctober 7, 2025
Flight Lands Early After Masked Passenger Raves About Gay People
Oddities

Flight Lands Early After Masked Passenger Raves About Gay People

by Esther Korantemaa OffeiOctober 6, 2025
Government to Roll Out ‘Nkukor Nkitinkiti’ Programme in October
International Backlash Mounts Over Israel’s Gaza City Takeover Plan
Ghana’s Minister for Communications, Digital Technology and Innovation, Hon. Samuel Nartey George
Petrol, LPG Prices to Rise Slightly from August 16, Diesel to Drop – COMAC 
Over GH¢39 Million Worth of Shares Change Hands in Explosive Trading Session
Flight Lands Early After Masked Passenger Raves About Gay People
[/vc_row_inner]

Recent News

  • IMANI Warns of Poultry Waste Risk Without Processing Plan Under Nkoko Nkitinkiti Programme
  • From October 7 To Gaza’s Ruins: Scars Run Deep On Both Sides As War Hits Two-year Mark
  • IMANI Challenges Minister’s Claim of ‘Increased Value Offer’ in DStv Deal
  • COMAC Probes into Alleged Manipulation of Fuel Consumption Data 
  • Over GH¢39 Million Worth of Shares Change Hands in Explosive Trading Session
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.