The newly formed South African National Petroleum Company (SANPC) has received R5 billion in phased funding from the Central Energy Fund (CEF) and has begun consolidating operations following the transfer of 402 employees from PetroSA, iGas and the Strategic Fuel Fund.
The asset and personnel transfers are part of a lease-and-assign model aimed at unlocking between R1,5 billion and R3 billion in synergies, Ayanda Noah, Chairperson of the CEF, said during a media briefing on May 14. The model is designed to ring-fence legacy liabilities, particularly those tied to PetroSA’s distressed Mossel Bay gas-to-liquids (GTL) refinery while allowing the SANPC to begin operating without inheriting operational and financial inefficiencies, as reported in Engineering News.
The SANPC was officially activated on May 1, following a commitment made by CEF executives to Parliament’s Portfolio Committee on Mineral and Petroleum Resources in late April. At the time, Mikateko Mahlaule, Chairperson of the Portfolio Committee on Mineral and Petroleum Resources, welcomed the undertaking and urged SANPC management to finalise the integration process swiftly. “The SANPC is a strategic asset of government to drive economic development and growth in the petroleum sector,” he said.
The company will prioritise infrastructure investment, including efforts to revive the SAPREF refinery in Durban, recently acquired by the CEF from Shell and bp, with plans to expand throughput capacity from 180 000 to 600 000 barrels per day. However, Mossel Bay’s GTL facility will remain under PetroSA for now, pending a viable recapitalisation or partnership model.
The SANPC confirmed the staff transfer has been completed. Asset integration is still pending and will proceed in phases once legal and commercial requirements are resolved.
