Ebrahim Patel poised to clinch Sinopec deal
Chinese oil giant set to invest R6bn to upgrade local refinery after agreeing to public interest conditions in line with Competition Act
China’s largest oil company has agreed to invest R6bn to upgrade and modernise the Chevron refinery in Cape Town if the Chinese company succeeds in its $900m bid to buy control of US oil major Chevron’s business in SA. The investment, which will enable the refinery to upgrade to new, cleaner fuel requirements, is one of a wide-ranging set of public-interest conditions that Economic Development Minister Ebrahim Patel negotiated with the China Petroleum and Chemical Corporation (Sinopec) in terms of the Competition Act. The Competition Commission gave the green light to the Sinopec deal, subject to the conditions agreed between Patel and the group, on January 3. It is understood that global oil trader Glencore, which in October joined up with Chevron SA’s empowerment shareholders for a rival, $973m bid for the local company, would have to match the public interest conditions agreed on with Patel if it wanted to get competition authority approval for its bid. Glencore said on Thursday ...
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