Page 12 - AfrOil Week 10 2021

AfrOil POLICY AfrOil

PetroSA is one of three entities that will form SANPC (Photo: PetroSA)
SFF, PetroSA, iGas set to

complete merger on April 1

SOUTH AFRICA SOUTH Africa’s Department of Mineral said that the country’s existing legal regime and
Resources and Energy (DMRE) has said that questions about the forensic reports submitted
the country will launch the new entity formed by PetroSA and SFF, as well as the insolvency
via the merger of three state-run firms – iGas, and liquidity challenges now facing PetroSA,
PetroSA and the Strategic Fuel Fund (SFF) – on had the potential to delay the merger.
April 1. Department officials responded to these que-
In a statement issued last week, DMRE said ries by noting that CEF and PetroSA were still
that the new company would be known as South under investigation, as was the forensic report
African National Petroleum Co. (SANPC). It submitted by SFF on allegations that 300,000
also expressed its hope that SANPC would be barrels of crude oil had been loaned to a com-
more efficient than its predecessors, noting that pany known as Enviroshoe without proper
it would make use of a common information authorisation. Meanwhile, they said, the legal
platform and a shared services system. team representing CEF and SFF is looking into
The South African government approved the consequent management process for those
plans for the merger last year. It did so in the entities.
wake of reports that PetroSA had lost no less Additionally, they urged South Africa’s cab-
than ZAR20bn ($1.32bn) since 2014. The com- inet not to postpone the process of granting
pany’s performance has been declining as sup- approval to the merger plans. Any delay on this
plies of feedstock for its gas-to-liquids (GTL) front could throw off the schedule for the forma-
plant in Mossel Bay have dwindled, and it was tion of the new company, they said.
unable to retain a permanent CEO between For her part, Sahlulele Luzipo, the chair of the
2015 and 2020, when Ismael Poolo took the job. committee, urged the Department of Mineral
PetroSA’s problems seem to have left some Resources and Energy not to treat her organisa-
observers sceptical about DMRE’s ability to tion as an adversary. “Our aim is to see admin-
complete the merger by the target date. Mem- istrative justice takes its course so that a degree
bers of South Africa’s portfolio committee of accountability is to be taken on any alleged
expressed this concern last week during a meet- wrongdoing,” she was quoted as saying by ESI
ing with representatives of the department. They Africa. ™

PROJECTS & COMPANIES
Sonatrach touts new marketing strategy

ALGERIA ALGERIA’S national oil company (NOC) recent years, as new exporters such as the US
Sonatrach is developing a new long-term mar- have made inroads in some of the established
keting strategy for its natural gas in response to markets for Algerian gas, even as established
increased competition for market share. large-scale exporters such as Russia have battled
In the most recent edition of its corporate for market share, it explained. (The disruption
newsletter, Sonatrach acknowledged that global also stems from the lower prices that have fol-
gas markets had been significantly disrupted in lowed increased competition, it added.)

P12 www. NEWSBASE .com Week 10 10•March•2021