TotalEnergies has signed a sales and purchase agreement (SPA) to divest its 36.36% minority stake in National Petroleum Refiners of South Africa (Natref) to the Prax Group.

Natref is a Joint Venture (JV) between TotalEnergies Marketing South Africa and South Africa-based integrated energy and chemical company Sasol (63.64%).

Located at Sasolburg, South Africa, the refinery can process 108,500 barrels of oil per day (bopd), and supply to the important South African inland market area of Johannesburg.

The transaction, a part of TotalEnergies’ strategy to divest non-core assets, is subject to customary approvals, consents, and authorisations.

Prax Group chairman and CEO Sanjeev Kumar Soosaipillai said: “The signing of this agreement is the first step towards our entry into Africa.  This will provide us a solid platform from which to execute our future growth strategy.

“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.”

TotalEnergies chief financial officer Jean-Pierre Sbraire said: “The transaction is in line with the Company strategy to focus on its large integrated fuels & petrochemicals platforms and to divest its non-core assets.”

TotalEnergies has been present in South Africa for almost seventy years.

It produces and markets a wide range of fuels, biofuels, natural gas and green gases, renewables and electricity and remains committed to its operations in the country.

Prax is engaged in operating, optimising and improving strategically important assets.

Through the stake in Natref JV, Prax enters the South African market and aims to improve the refinery’s competitive position through future strategic investment.

The group believes that the Natref refinery will serve as a focal point for its expansion into Africa, with further investment and a regional hub developed around the assets in South Africa​.