Johannesburg – Transnet SOC Limited (Transnet), through its division Transnet Pipelines, is responsible for transporting crude oil from Durban to the Natref refinery in Sasolburg.
This refinery is co-owned by Sasol Oil (Pty) Ltd (Sasol Oil) and TotalEnergies Marketing (Pty) Ltd (TotalEnergies), holding 63.64% and 36.36% shares respectively.
In 2017, Sasol Oil initiated legal action against Transnet, following TotalEnergies’ lead, due to Transnet’s failure to set pipeline tariffs in accordance with a 1991 agreement.
This breach resulted in Transnet overcharging Sasol Oil for crude oil transportation over several years.
The legal battle has spanned multiple courts, including the High Court, Supreme Court of Appeal, and Constitutional Court.
The unresolved issues were brought to trial in the High Court of South Africa from April 15 to May 3, 2024.
On June 18, 2024, the High Court ruled in favor of Sasol Oil and TotalEnergies, awarding Sasol Oil R3,889,475,802 in damages plus interest, amounting to approximately R2.3 billion.
*The article first appeared in our sister publication: Techfinancials
