Sasol Limited has achieved a major legal victory. The High Court has awarded the company R3.89 billion in damages. This decision is part of a lengthy legal battle with Transnet SOC Limited. Sasol Oil (Pty) Ltd and TotalEnergies Marketing (Pty) Ltd had sued Transnet for overcharging.
Background
Transnet, through its unit Transnet Pipelines, transports crude oil. The oil is moved from Durban to the Natref crude oil refinery in Sasolburg. Sasol Oil and TotalEnergies hold 63.64% and 36.36% of Natref, respectively.
Legal Dispute
In 2017, Sasol Oil followed TotalEnergies in suing Transnet. The lawsuit was about a breach of obligation to set pipeline tariffs. This agreement was originally made in 1991. Transnet overcharged Sasol Oil for crude oil transport for years.
Legal Proceedings
The litigation has been ongoing for several years. Various courts, including the High Court, Supreme Court of Appeal, and Constitutional Court, have ruled on different issues.
Recent Developments
High Court Trial
The remaining issues went to trial in the High Court of South Africa. The trial took place from April 15 to May 3, 2024. On June 18, 2024, the High Court ruled in favor of Sasol Oil and TotalEnergies.
Damages Awarded
The court awarded Sasol Oil R3.89 billion in damages. In addition, interest amounting to approximately R2.3 billion was also awarded. This totals to around R6.19 billion.
| Company | Damages Awarded | Interest | Total |
|---|---|---|---|
| Sasol Oil | R3,889,475,802 | R2.3 billion | R6,189,475,802 |
Company Statements
Sasol Limited
Sasol Limited is incorporated in South Africa. The registration number is 1979/003231/06. The company’s ordinary share codes are JSE: SOL and NYSE: SSL. The ordinary ISIN codes are ZAE000006896 and US8038663006. Sasol BEE Ordinary Share code is JSE: SOLBE1, and its ISIN code is ZAE000151817.
Sasol Financing Limited
Sasol Financing Limited is also incorporated in South Africa. Its registration number is 1998/019838/06. The company code is SFIE, and the LEI is 378900A5BC68CC18C276.
Transnet SOC Limited
Transnet SOC Limited, known simply as Transnet, is a state-owned company. It manages the transportation of crude oil through its business unit, Transnet Pipelines. The oil is transported from Durban to the Natref crude oil refinery in Sasolburg.
Conclusion
This ruling is a significant win for Sasol Limited. The company has been awarded substantial damages. The total amount, including interest, is approximately R6.19 billion. This outcome could have broader implications for similar cases in the future.