The sale of the South African Petroleum Refinery , jointly owned by multinational energy companies BP and Shell, to the state-owned Central Energy Fund for R1 raises questions about whether the company is evading its social and environmental liabilities.
Selling the refinery to the South African government, instead of decommissioning it, suggests that Sapref will not be held accountable for historical environmental liabilities and social injustices. Decommissioning the refinery would have meant that Sapref was liable for the costs of restoring the site to its original state. Public money may have to be used to clean up and remediate the Sapref site in future. The sale price does not, of course, cover any of these costs.
Other accidents and incidents included a fire and a spill of 1,000 litres of petrol into Durban Bay. A malfunction released five tonnes of hydrogen fluoride into the atmosphere. This is a poisonous chemical that could damage people’s lungs and hearts and even cause death. In 2017, the provincial government declared the area a pollution hot-spot in its Environment Outlook Report. Between 2010 and 2020, 61 serious pollution incidents and accidents in the area were documented, of which 48 emanated from Sapref and the rest from the neighbouring Engen refinery.The Mineral and Petroleum Resources Development Act does not provide guidelines and directives on the issuance of closure certificates for refineries as it does for mining.
My research has found that the government has neither the ability nor the technical skills to clean up industrial pollution. The close alliance between government and industry to promote economic development has overshadowed social and environmental protection. Thus, there is a history of weak and inadequate enforcement in South Durban, including a lack of political will to deal with industrial risks.