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South African Department of Mineral Resources and Energy endorsed the consolidation of Central Energy Fund associates of iGas, PeteoSA and the Strategic Fuel Fund
Posted On 10 Mar 2021
By Abdul Rahman Bangura–
Photo Credit: PetroSA
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone– The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).
The unification will be active from April 1st, 2021 and the new firm will be dubbed the South African National Petroleum Company.
The consolidation, steered by the rivalry of carrying out a new company that has a facilitated operating model via the development of a shared services system and a mutual information platform, arrives a few months after cabinet agreement and the assurance that PetroSA had incurred losings of R20 billion since 2014.
Extra components which provoked the motion comprised the decision to bolster PetroSA which had not had a stable CEO in five years preparatory to the authorization of CEO Ishmael Poolo last and, had become majorly ungainful since its loss to secure gas for the gas-to-liquids refiner before the merger deadline has been set, the portfolio
committee communicated compunctions to the department’s likelihood of meeting the deadline, deeming the prevailing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current bankruptcy and liquidity challenges, the official on the briefing disclosed.
“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”
The African Energy Chamber greets this motion and concedes that this is yet another stride funding the country’s decision to renewing the contraptions of endurable development and the modification of energy policy and infrastructure.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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