South Africa: Minerals and Petroleum Resources Committee Encouraged by the Central Energy Fund (CEF) Group's Healthy Balance Sheet to Fund Operations until 2030
The CEF Group's balance sheet will fund the company's operation until 2030, and the group is projecting a net profit of R398 million by 2030.
The committee views this information as positive, considering that CEF together with its subsidiaries, except for the Petroleum Agency South Africa (PASA), are Schedule 2 state-owned entities required to generate revenue to fund their operations, without allocation from the state.
The CEF Group's subsidiaries are PASA, the African Exploration Mining and Finance Corporation (AEMFC), iGas, PetroSA and the Strategic Fuel Fund (SFF). Meanwhile, the CEF Group is in an advanced stage to merge PetroSA, iGas and SFF to establish a single state petroleum company called South African National Petroleum Company (SANPC).
SANPC is established as part of government's initiative to repurpose and rationalise state-owned enterprises to support the country's growth and development.
The committee, however, raised a concern with the missed target for SANPC to go live by 1 April 2025, as it was promised in February this year. CEF Group announced a new date of 1 May 2025.
Although noting the challenge of transferring the current employees and some assets from PetroSA, iGas and SFF to SANPC, the committee is comforted by relentless efforts to find an amicable solution with the organised labour as well as the authorities in Ghana to approve the transfer of assets belonging to PetroSA Ghana Limited back to PetroSA in South Africa.
The committee further welcomed the commitment by the Board of CEF Group to fill existing vacancies at the executive level to strengthen governance and improve delivery.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
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