Sasol Wins $344 Million Lawsuit Against Transnet Over Oil Tariffs

South Africa's Sasol secured a $344 million win in damages against Transnet in a High Court ruling over overcharged crude oil transportation tariffs. The lawsuit, initiated in 2017 with TotalEnergies, centered on a longstanding tariff dispute. The ruling includes $216 million plus interest in damages for Sasol Oil.

South Africa's Sasol has won $344 million in damages in a High Court ruling against state-owned logistics utility Transnet which it accused of overcharging it for transporting crude oil for several years, the petrochemical firm said on Thursday. Sasol Oil in 2017 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 ($216 million) plus interest amounting to approximately 2.3 billion rand ($128 million) were awarded to Sasol Oil," Sasol said in a statement. Transnet and TotalEnergies were 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)

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