Global commodities trader Trafigura is among three contenders seeking to acquire a minority stake in South Africa’s Natref oil refinery, sources familiar with the matter said.
The stake, amounting to 36.36 percent in the refinery, became available after the UK-based Prax Group — which had previously acquired it from TotalEnergies — entered administration in 2025.
Natref, operated by Sasol, is South Africa’s only inland crude oil refinery and has a capacity of about 108,500 barrels per day, making it a strategically important asset in the country’s fuel supply chain.
Sources said the bidding process is open and competitive, with Trafigura not in exclusive negotiations. Two Black-owned South African energy firms are also vying for the stake, potentially with backing from international partners at a later stage.
Sasol retains a majority shareholding in Natref and holds a right of first refusal over the stake, giving it the option to match any offer, according to comments previously made by chief executive Simon Baloyi.
The sale comes at a time when South Africa’s fuel market continues to show long-term growth potential, in contrast to parts of Europe where oil demand is expected to decline amid the transition to cleaner energy sources.
Industry analysts say ownership of refining assets in Africa remains attractive due to rising energy demand, urbanisation and ongoing reliance on fossil fuels across many economies.
In South Africa, the government has also promoted policies such as Black Economic Empowerment (BEE), aimed at increasing participation of historically disadvantaged groups in key sectors, including energy.
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The involvement of Black-owned firms in the bidding process reflects these policy priorities, although details about the companies have not been disclosed due to the sensitivity of ongoing negotiations.
Trafigura, one of the world’s largest commodity traders, is already active in South Africa, where it competes with major rivals such as Vitol and Glencore.
The company has been expanding its footprint across Africa, recently signing a $1 billion prepayment agreement with Gabon to secure crude oil supplies over several years.
For Sasol, securing a financially strong and reliable partner for Natref is seen as critical to maintaining operational stability and avoiding past disruptions linked to ownership changes.
While neither Sasol nor Prax provided further comment on the sale process, the outcome is expected to shape the future of one of South Africa’s key refining assets.
Analysts note that beyond the immediate transaction, the deal highlights broader trends in Africa’s energy sector, where traditional oil infrastructure continues to attract investment even as countries pursue long-term energy transition strategies.
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The final decision on the stake is likely to hinge on a combination of financial strength, strategic alignment and regulatory considerations, with potential implications for fuel supply security and market competition in South Africa.
As the bidding process unfolds, the Natref sale is expected to draw close attention from both industry players and policymakers, given its importance to the country’s energy landscape.
