HIGH COURT AWARDS DAMAGES TO SASOL AGAINST TRANSNET

Rhea-AI Summary

The High Court of South Africa has awarded Sasol Oil damages amounting to R3.89 billion plus interest of approximately R2.3 billion, resulting from a legal dispute with Transnet SOC The litigation, which began in 2017, concerned Transnet's breach of its obligation to set fair pipeline tariffs for crude oil transportation as per a 1991 agreement. Sasol Oil, alongside TotalEnergies Marketing, which both own shares in the Natref crude oil refinery, claimed they were overcharged for crude oil conveyance over several years. The trial concluded between April 15 and May 3, 2024, with the judgment delivered on June 18, 2024, favoring Sasol Oil and TotalEnergies.

Positive

• Sasol Oil awarded R3.89 billion in damages.
• Additional interest of approximately R2.3 billion awarded to Sasol Oil.
• Successful litigation against Transnet for overcharging.

Negative

• Prolonged litigation since 2017.
• Potential financial strain on Transnet due to the substantial damages and interest owed.

JOHANNESBURG, June 20, 2024 /PRNewswire/ -- Transnet SOC Limited (Transnet), through its business unit Transnet Pipelines, transports crude oil for both Sasol Oil (Pty) Ltd (Sasol Oil) and TotalEnergies Marketing (Pty) Ltd (TotalEnergies) from Durban to the Natref crude oil refinery located in Sasolburg. Sasol Oil and TotalEnergies hold 63,64% and 36,36% respectively of the shares in Natref.

In 2017, Sasol Oil followed TotalEnergies in instituting legal action against Transnet for damages arising from Transnet's breach of its obligation to set pipeline tariffs for conveyance of crude oil in terms of an agreement that had been entered into between the parties in 1991. The result of the breach was that Transnet overcharged Sasol Oil for the conveyance of crude oil over a number of years.

The litigation between the parties has been ongoing for years and a number of issues in the matter have been determined by the High Court, Supreme Court of Appeal and Constitutional Court respectively.

The remaining issues in the litigation proceeded to trial in the High Court of South Africa from 15 April to 3 May 2024. On 18 June 2024, judgement was handed down by the High Court in Sasol Oil and TotalEnergies' favour. Damages in the amount of R3 889 475 802 plus interest amounting to approximately R2,3 billion were awarded to Sasol Oil.

View original content:https://www.prnewswire.com/news-releases/high-court-awards-damages-to-sasol-against-transnet-302177848.html

SOURCE Sasol Limited

FAQ

What damages were awarded to Sasol Oil against Transnet?

The High Court awarded Sasol Oil R3.89 billion in damages plus interest amounting to approximately R2.3 billion.

When was the judgment in favor of Sasol Oil delivered?

The judgment was delivered on June 18, 2024.

What was the legal dispute between Sasol Oil and Transnet about?

The dispute concerned Transnet's breach of its obligation to set fair pipeline tariffs for crude oil transportation as per a 1991 agreement.

How long did the trial between Sasol Oil and Transnet last?

The trial lasted from April 15 to May 3, 2024.

What shares do Sasol Oil and TotalEnergies hold in the Natref refinery?

Sasol Oil holds 63.64% and TotalEnergies holds 36.36% of the shares in the Natref refinery.