Latest news with #GodfreyMoagi
Zawya
21-05-2025
- Business
- Zawya
South Africa wants $100 a barrel oil before selling more crude stocks
South Africa will wait for global oil prices to rise to around $100 a barrel before selling more of its strategic crude reserves, a senior energy official told Reuters. The country has been looking to sell crude since 2022, when the government cushioned consumers from high petrol and diesel prices by temporarily cutting a fuel levy on the condition that the revenue would be recouped by selling oil from the strategic reserves. Brent crude averaged $99 a barrel that year. Global crude prices have taken a hammering in recent weeks, hurt by worries that U.S. President Donald Trump's trade war could push economies around the world into recession. Brent was trading around $66 a barrel on Wednesday. "The oil price is too low, so if you sell today you are going to empty the tanks. So we have to sell at the right level to make sure we still have strategic stocks," Godfrey Moagi, CEO of the state-owned South African National Petroleum Company, told Reuters. "We are looking to sell at around $100 a barrel," he said. South Africa's National Treasury is expecting to receive 4 billion rand ($223.2 million) from the sale of more crude oil from the country's strategic reserves in the fiscal year that ends in March 2026, but Moagi's comments suggest that may not happen unless global oil prices rally. Following the levy cut in 2022, 2 billion rand was transferred to the government in the 2023/24 fiscal year, which was when Brent futures last traded close to $100 a barrel. South Africa's current strategic crude reserves are estimated at roughly 7.7 million barrels. Since 2022, 2 million barrels have been sold to local petrochemical firm Sasol and another 280,000 barrels to the local unit of France's TotalEnergies, Moagi said. The strategic reserves are held by the Strategic Fuel Fund Association, a ring-fenced unit of the company Moagi leads. ($1 = 17.9209 rand)
Reuters
21-05-2025
- Business
- Reuters
South Africa wants $100 a barrel oil before selling more crude stocks
CAPE TOWN, May 21 (Reuters) - South Africa will wait for global oil prices to rise to around $100 a barrel before selling more of its strategic crude reserves, a senior energy official told Reuters. The country has been looking to sell crude since 2022, when the government cushioned consumers from high petrol and diesel prices by temporarily cutting a fuel levy on the condition that the revenue would be recouped by selling oil from the strategic reserves. Brent crude averaged $99 a barrel that year. Global crude prices have taken a hammering in recent weeks, hurt by worries that U.S. President Donald Trump's trade war could push economies around the world into recession. Brent was trading around $66 a barrel on Wednesday. "The oil price is too low, so if you sell today you are going to empty the tanks. So we have to sell at the right level to make sure we still have strategic stocks," Godfrey Moagi, CEO of the state-owned South African National Petroleum Company, told Reuters. "We are looking to sell at around $100 a barrel," he said. South Africa's National Treasury is expecting to receive 4 billion rand ($223.2 million) from the sale of more crude oil from the country's strategic reserves in the fiscal year that ends in March 2026, but Moagi's comments suggest that may not happen unless global oil prices rally. Following the levy cut in 2022, 2 billion rand was transferred to the government in the 2023/24 fiscal year, which was when Brent futures last traded close to $100 a barrel. South Africa's current strategic crude reserves are estimated at roughly 7.7 million barrels. Since 2022, 2 million barrels have been sold to local petrochemical firm Sasol (SOLJ.J), opens new tab and another 280,000 barrels to the local unit of France's TotalEnergies ( opens new tab, Moagi said. The strategic reserves are held by the Strategic Fuel Fund Association, a ring-fenced unit of the company Moagi leads. ($1 = 17.9209 rand)
The Citizen
16-05-2025
- Business
- The Citizen
National Petroleum Company's bold plan to secure SA's energy security
One of its ambitions is to rebuild local fuel refining capacity, which has dwindled from 80% to 35% of refined fuel consumed in SA since 2010. Will it work? The EFF isn't happy, but CEO Godfrey Moagi's experience in the sector should quash fears that the new SOE will be stuffed with cadres. Picture: Supplied The South African National Petroleum Company (SANPC) was launched last month with the bold aim of securing SA's energy security. It creates a new state-owned entity (SOE) by merging three Central Energy Fund (CEF) subsidiaries: PetroSA, iGas, and the Strategic Fuel Fund (SFF). This is the product of the SANPC Bill, which creates a new government-owned entity to manage strategic oil reserves and storage. Given the government's abysmal track record in managing state-owned entities – which received more than R520 billion in taxpayer-funded bailouts over the last decade – there remains understandable concern that this new entity will feed from the same trough. The Economic Freedom Fighters (EFF) doesn't like it one bit, arguing that the reliance on outsourcing creates a platform for corruption, with private sector companies exploiting state assets. ALSO READ: South Africa forms new state-owned petrol company Unlocking opportunities This week government put flesh to the corporate skeleton and filled in some of the gaps in how exactly the SANPC would go about unlocking R95 billion in promised market opportunities and extracting R1.5 billion a year in 'synergy optimisation'. Rather than merging and amalgamating the three entities, the new company will operate on a lease and assignment model, which is a legal way of ring-fencing the troubled PetroSA's legacy assets, such as its gas-to-liquids refinery in Mossel Bay, where reserves have run out, as well as decommissioning liabilities of about R1 billion. Key leases and contracts have now been transferred to SANPC. These include SFF fuel tank farms in Milnerton and Saldanha in the Cape, the Montague Gardens depot in Cape Town (owned jointly by SFF and BP), cash and various assets owned by the SFF and PetroSA in Ghana and Sudan. The SANPC intends to rescue SA's rapidly depleting fuel refining sector, with less than 35% of refined fuel now being locally produced, compared with 80% in 2010. SA now imports 18.7 billion litres out of 25 billion litres of refined fuel consumed. 'This new emerging trend was not only threatening the country's economic stability, as well as the security of supply of petroleum products but it also meant the exportation of jobs that are so needed in the country given the stubbornly high level of unemployment,' said CEF chair Ayanda Noah at a media presentation on Wednesday. Back in 2010, SA produced about 720 barrels a day in refined product through six refineries, but that figure has fizzled due to the estimated R40-60 billion in upgrades needed to meet cleaner fuel standards. ALSO READ: 'New site for tender fraud': EFF wary of SA's new petrol company Sapref in Durban, once supplying more than a third of SA's refining capacity, was shuttered in 2022 and then purchased by the CEF in 2024 with a view to rehabilitating and expanding its capacity. This has since been renamed the SANPC Refinery, with plans to expand output from 180 000 barrels a day to more than 600 000 barrels a day. Plans are also in place to restore PetroSA's Mossel Bay gas-to-liquids (GTL) refinery in Mossel Bay, reduce overheads, and assist in settling its trading debts. The GTL refinery will be recapitalised and rebooted as part of the plan to restore SA's energy independence. In April, Africa Intelligence reported that PetroSA owed Swiss trading firm Gunvor nearly R616 million for two cargo ships of fuel as well as demurrage fees. As of March 2025, it also reportedly owes more than R1.5 billion to other traders, including the SFF, a fellow state-owned entity, as well as Nako Energy and Addax Energy. ALSO READ: Just 7 days of jet fuel left at OR Tambo International Airport New entity 'will be a game-changer' The CEO of the SANPC is Godfrey Moagi, who is also CEO of the SFF and previously worked at BP Oil International in trading and strategy. His experience in the sector should quash fears that the new SOE would be stuffed with cadres. CEF's Noah says the new company will be able to improve efficiencies and minimise duplications, resulting in cost reductions. 'The operationalisation of a commercially viable South African National Petroleum Company will be a game-changer not only for South Africa but also for the continent. This new entity will play a critical role in supporting the government's broader strategic initiatives as well as fostering regional integration on matters related to oil and gas.' This week's handover of assets and funding to the SANPC has the blessing of organised labour and means jobs for 402 employees previously employed by the CEF's three subsidiaries. These will be followed by a further 620 employees currently employed by PetroSA. The goals are ambitious and, by some estimates, could attract $2-3 billion in foreign direct investment in oil and gas exploration. ALSO READ: SA's biggest crude oil refinery to halt operations until further notice Scepticism and concerns The creation of a new SOE has attracted plenty of scepticism, given the potential for mismanagement and corruption following the sale of strategic oil reserves by the SFF to private companies at heavily discounted prices between December 2015 and January 2016. The Western Cape High Court overturned those sales in 2020, when it appeared the SFF and CEF boards were not aware of the deals until they were signed. There are also concerns over PetroSA's assets, of which about R500 million are considered non-viable. The ring-fencing nature of the deal effectively delays having to deal with that now. There's also pushback from the green lobby, given the SANPC's emphasis on oil and gas at a time when SA has undertaken to reduce exposure to these energy sources. Not everyone agrees with these criticisms. The Africa Energy Chamber and the EU-Africa Chamber of Commerce see the SANPC as a catalyst for investment, economic development, and energy security. This article was republished from Moneyweb. Read the original here.
Zawya
03-03-2025
- Business
- Zawya
South Africa's South African National Petroleum Company (SANPC) to Showcase Strategic Vision at Invest in African Energy (IAE) 2025
South Africa's newly established South African National Petroleum Company (SANPC) will host an investor roadshow at the Invest in African Energy (IAE) Forum in Paris this May, highlighting its strategic vision and the more than R95 billion in untapped market and investment opportunities in South Africa's oil and gas sector. Under the theme "South Africa's Energy Future: A New Age State Entity," the presentation will be led by SANPC CEO Godfrey Moagi, following the company's official launch, scheduled for April 2025. With a clear mandate to promote energy independence and diversification, SANPC is set to drive large-scale investments in the oil, gas and clean energy sectors. SANPC's strategy includes ring-fencing all non-functioning assets, identifying assets that can be moved to the NOC and ensuring these assets can be traded and utilized effectively. At the IAE 2025, delegates will gain an exclusive look into SANPC's far-reaching goals, including the creation of a state-backed energy company that will enhance the country's energy security, facilitate the transition to cleaner energy sources and create employment opportunities for the nation's youth. IAE 2025 (https:// is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit To sponsor or participate as a delegate, please contact sales@ SANPC's strategic vision aligns with South Africa's National Development Plan, which outlines the country's goals to expand access to affordable, reliable energy while navigating the energy transition. The creation of SANPC marks a bold step toward achieving these objectives, acting as a catalyst for new ventures, partnerships and large-scale infrastructure projects. As South Africa's energy landscape undergoes reform, SANPC aims to drive the rapid deployment of new projects while adhering to the highest sustainability standards and fostering regional integration in oil and gas. SANPC's participation at IAE 2025 is part of the company's series of investor roadshows, first launched at the African Energy Week: Invest in African Energies 2024 conference in Cape Town. These roadshows support the company's commitment to attracting foreign investment and offer stakeholders the opportunity to engage with SANPC leadership, while gaining insight into the company's vision for an energy future that fosters both economic and environmental sustainability. Distributed by APO Group on behalf of Energy Capital&Power.
