Page 16 - AfrOil Week 22a 2020

AfrOil POLICY AfrOil
ZERA confirmed in late May that the country was having difficulty procuring fuel supplies.
“The current fuel shortages are attributed to logistical glitches experienced in the fuel pro- curement system by oil companies,” the regu- lator’s acting CEO, Eddington Mazambani, told
local press on May 24. “This has created a gap in the supply chain, resulting in the demand sur- passing supply. Supplies are, however, expected to improve soon due to measures which have been put in place. He did not elaborate on what these measures were. ™
PROJECTS & COMPANIES
Sasol denies plan to sell fuel retail network
SOUTH AFRICA
SOUTH African energy and chemicals group Sasol has denied reports that it is looking to sell its 410-strong chain of filling stations.
Reports in the local press claimed the com- pany was negotiating the sale of its fuel retail operations to the state-owned Central Energy Fund (CEF). The business, which accounts for 11% of the country’s regulated retail market, has come under significant strain since South Africa imposed a lockdown on May 27, causing fuel demand to plummet.
“Sasol is not divesting its downstream fuel retail business as part of its ongoing asset dis- posal process,” Sasol said in a statement on May 26. Rather, the company is looking to grow its fuel retail presence in the country, it said.
“Here, our focus remains on improving mar- gins by looking for higher value markets for our existing production of fuels. This means both organic retail growth, by increasing our retail site development and conversion of sites to the Sasol brand, and possible small-scale acquisi- tions,” Sasol CFO Paul Victor said. “Although we are regularly approached by interested parties to
acquire or partner with us in the retail network space, we are not in discussions with any such parties to divest or partner in our downstream fuel retail business.”
Sasol faces “short-term challenges,” but its business “is fundamentally robust and we have a clear pathway to resume value creation,” Victor concluded.
CEF has also dismissed the reports, which it described as “malicious” and “bordering on sensational.” It said: “At no stage did the CEF Board nor its chairperson Dr Mnyande publicly announce that it is negotiating with Sasol to buy its petrol stations.”™
Sasol’s chain includes 410 filling stations (Image: Marais 4 Architects)
Golar LNG still in talks on African project
BERMUDA-REGISTERED Golar LNG has issued an update on its activities related to pro- jects in Africa and South America.
In a report on its performance in the first quarter of 2020, Golar LNG said it was work- ing to hammer out an agreement on revising the schedule and budget for the conversion of the Gimi floating LNG (FLNG) vessel. “We are in advanced and positive discussions with our main building contractor, Keppel Shipyard Ltd, and with engineering topsides subcontractor Black and Veatch, on a revised cost and time schedule for the FLNG Gimi conversion,” it stated.
BP and its partners had previously struck a deal with Golar LNG’s subsidiary Gimi MS Corp. on the use of the Gimi to develop Tor- tue/Ahmeyim, an offshore block that straddles the border between Senegal and Mauritania.
In April, though, they declared force majeure on the project, saying that the coronavirus (COVID-19) pandemic had forced them to push their work schedule back by 12 months.
Since then, Golar LNG has been in talks with the contractors it hired for the conversion. The company indicated in its interim report that it had made proposals for a revised time and cost schedule but did not elaborate. “If implemented, this would reduce Golar’s immediate liquidity contribution to the FLNG Gimi between the second quarter of 2020 and the original sec- ond-quarter2022deliverydate,”itsaid.
“The consequences of any delay to the returns available from the project will be dependent on the ultimate duration and cause of the delay claimed by BP and the final terms of the revised conversion building agreements,” it added. ™
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w w w . N E W S B A S E . c o m Week 22 03•June•2020