Transnet to appeal against $344 mln Sasol award over tariff dispute (updated)

Sasol

20/06/2024 09:52

(Recasts with Transnet planning to appeal court ruling)
       June 20 (Reuters) - South Africa's logistics utility
Transnet said on Thursday it would appeal a court decision to
award Sasol  SOLJ.J  and TotalEnergies  TTEF.PA  about 6.2
billion rand ($344 million) in damages and interest to settle a
tariff dispute.
    Sasol said earlier on Thursday that it won the award in a
High ruling against Transnet, which it accused of overcharging
it for transporting crude oil for several years.
    "The judgment thus has enormous implications not only for
the public purse but also for Transnet’s ability to discharge
its obligations," Transnet said in a statement. 
    "Transnet intends to appeal the judgment," it added. 
    In 2017, Sasol Oil joined TotalEnergies, its joint venture
partner in the Natref crude oil refinery, in a lawsuit against
Transnet Pipelines over a tariff dispute.
    "On 18 June 2024, judgement was handed down by the High
Court in Sasol Oil and TotalEnergies' favour. Damages in the
amount of 3,889,475,802 rand plus interest amounting to
approximately 2.3 billion rand ($128 million) were awarded to
Sasol Oil," Sasol said in a statement.
    TotalEnergies was not immediately available to comment.
    The dispute has its roots in a 1967 agreement between the
then South African government and Total, which established an
inland crude oil refinery at a time when coastal refineries were
struggling to meet inland demand.
    To secure the participation of Total in the inland refinery
Natref, the government put in place a pipeline tariff structure
that would match the costs of a coastal processing facility.
    Sasol, which was set up as a state-owned business in 1950
and privatised in 1979, owns 63,64% of Natref, with
TotalEnergies holding the remainder.
    ($1 = 17.9996 rand)


 (Reporting by Nelson Banya; editing by Jason Neely and Emelia
Sithole-Matarise)
 ((Nelson.Banya@thomsonreuters.com;))