Transnet to appeal order to pay billions in damages to Sasol Oil over Natref dispute

SASOLBURG - In a dispute over pipeline tariffs to Natref in Sasolburg, Transnet plans to appeal a ruling by the High Court in Pretoria to pay over R6-billion in damages plus interest to Sasol Oil and TotalEnergies. The ruling follows a long-running dispute over pipeline tariffs to the Natref refinery in Sasolburg. Sasol and TotalEnergies had accused Transnet’s Transnet Pipelines subsidiary of overcharging on the transportation of crude oil from Durban to the Natref crude oil refinery in Sasolburg by not correctly using an agreed formula to determine the tariff. Sasol Oil and TotalEnergies were awarded R3.8-billion and R2.1-billion in damages, respectively. The state-owned entity expressed disappointment and says the judgment has significant implications for its ability to fulfil its obligations. Transnet is instructing its legal team to appeal. Transnet said the dispute flowed from the transportation of crude oil on their pipeline from a historic agreement that was cancelled in 1991, allowing for neutrality tariffs, maintaining that Total and Sasol had a transportation benefit from a finite public resource, which other oil companies like BP, Shell and Caltex did not benefit from.

PHOTO: (Supplied)