South Africa has extended long-term lease access at its Island View Precinct to oil giants including BP and traders such as Vitol, ending years of uncertainty over short-term arrangements that had threatened investment and fuel supply, Reuters reports.

The decision, authorised by Transport Minister Barbara Creecy under Section 79 of the National Ports Authority Act, allows the government to bypass standard procedures in the national interest. Island View, part of Durban port on the east coast, handles roughly 70 percent of the country’s fuel imports and serves as the main storage and distribution hub.

Fani Tshifularo, chief executive of the Fuels Industry Association of South Africa, described the minister’s intervention as a significant win. "The Section 79 letter was issued to our members. It is in our favour. Remember we wanted a long-term tenure, so we got that," he said, adding that formal 25-year lease negotiations with Transnet National Ports Authority are expected to begin soon.

BP confirmed that the approval covers Sapref Pty Ltd, its joint venture with Shell, which has focused on fuel imports at Island View since 2022 after ceasing refinery operations and selling the plant to the state-owned Central Energy Fund, Reuters notes. Engen, where Vitol is a majority shareholder, said the minister had agreed to conditions but provided no further details.

A spokesperson for the Transport Ministry told Reuters that the specifics of the Section 79 letter are confidential, with a statement to follow. Transnet said it would respond later on Tuesday. The Central Energy Fund did not respond to Reuters inquiries regarding its own Section 79 application or the potential impact on plans to revive the flood-damaged Sapref refinery and expand oil trading under the national oil company SANPC, a Fund subsidiary.