Latest news with #SANPC
Zawya
7 days ago
- Business
- Zawya
South Africa: SANPC is open for business, Mantashe
The South African National Petroleum Company (SANPC) is open for business and ready for investors. The South African National Petroleum Company (SANPC) is open for business and ready for investors, says Minister of Mineral and Petroleum Resources, Gwede Mantashe This is according to the Minister of Mineral and Petroleum Resources, Gwede Mantashe, who delivered remarks at the official launch of SANPC in Johannesburg, on Friday. The new state-owned enterprise (SOE) is an amalgamation of PetroSA, the South African Gas Development Company (iGas) and the Strategic Fuel Fund Association. It is aimed at enhancing South Africa's energy security, reducing dependence on imported petroleum products and ensuring more effective management of the country's petroleum assets. Energy security 'The real issue is ensuring energy security in the country. In the wake of evolving global trends, including the push to shift away from fossil fuel usage, the SANPC is expected to operate in an increasingly volatile, unpredictable and polarised world. 'The local refining capacity is also quite critical. Reviving PetroSA is important, SAPREF is important and therefore, if there are people who want to partner with us… we are open for business, we are open for partnerships, and we are open for people who want to invest,' he says. The minister highlighted that the demand for fossil fuels is expected to grow, despite the 'shift in demand towards cleaner sources of energy production'. 'To this end, the SANPC is expected to oversee strategic planning, coordination, and governance of the country's petroleum resources, and thereby contribute to the country's sustainable development and inclusive economic growth. 'For the entity to generate revenue for self-sustainability and sufficiency, it must take advantage of the strategic partnerships and national capabilities in the energy industry to champion energy supply and investment in associated infrastructure,' he says. Good governance and leadership The minister emphasises the need for good governance and leadership at the SOE. 'To enable the entity to deliver on its mandate, we had to ensure good governance, and in so doing, reduce both the operational and financial risks; hence, we swiftly appointed the board of directors, an interim CEO, as well as the non-executive directors in April last year. 'Since then, tremendous work has been done in winding down the outstanding matters and getting governance arrangements going. 'For the entity to succeed, it must have a strong leadership with vision, common objectives, and the ability to develop managerial capacity. "It is equally important for all employees to foster a new culture and a sense of community that encourages collaboration and teamwork as well as transparent and honest communication. 'A task at hand for all of us is to ensure that the entity remains financially sustainable and independent in order to fulfil its developmental mandate,' Mantashe concludes.
IOL News
26-05-2025
- Business
- IOL News
South Africa grapples with crude oil supply risks as financial strain hits Natref refinery
The South African National Petroleum Company (SANPC) is the newly established State-Owned Company formed after the merger of three of the Central Energy Fund (CEF) subsidiaries, Igas, PetroSA and Strategic Fuel Fund. Image: Supplied Banele Ginidza As South Africa grapples with an increasing dependence on fuel imports, the National Petroleum Refiners of South Africa (NATREF) refinery in Sasolburg has raised alarm bells over its future sustainability. Sipho Mkhize, chairman of the South African National Petroleum Corporation (SANPC), on Friday outlined the financial strain faced by the only inland crude oil refinery, which is reliant on material transported via the Single Buoy Mooring (SBM) in the Indian Ocean off Durban. The backdrop to this crisis is the shutdown of Durban's local refineries, which has severely reduced SBM utilisation by 80%, leading to soaring operational costs for NATREF. Mkhize warned that if these financial pressures continue unabated, NATREF may have to cease operations, which would place an overwhelming burden on South Africa's petroleum supply chain "These financial strains could force the refinery to close, making South Africa dependent on imports to grow to 85% of its petroleum needs and increasing vulnerability and security of supply risks," Mkhize said. He was speaking at the launch of the SANPC, which has been formed through the merger of three Central Energy Fund (CEF) subsidiaries, i.e. iGas, the Strategic Fuel Fund (SFF), and PetroSA. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Currently, the nation imports around 75% of its fuel; a closure of the refinery could push this figure to a staggering 85%, significantly increasing the risk of supply vulnerabilities and security risks. In response, Mkhize disclosed plans for converting the existing SBM into a Multi-Buoy Mooring (MBM), which would enhance flexibility in liquid bulk handling within the Durban Precinct. This strategic move aims to alleviate the throughput bottlenecks currently crippling the NATREF refinery. Additionally, Mkhize stated that SANPC will seek directives to obtain leases for sites linked directly to the refinery from the Transnet National Port Authority (TNPA) to bolster operations further. Mkhize said the SANPC would reach out to the Ministers of Minerals and Petroleum Resources, Transport, and Forestry, Fisheries, and the Environment for the applications aimed at laying a foundation for a national energy champion that will be capable of delivering long-term value. "SANPC is not just another company. It is a national asset. It is the embodiment of the government's vision for a modernised, integrated, and impactful energy sector player," he said. "South Africa needs a strong and agile energy company to be able to respond to the energy challenges faced by the country as well as advancing the key components of the National Development Plan." Mkhize also emphasised the importance of establishing a State-owned independent terminal operator, which would manage port facilities to ensure equal access to berths. This strategy aims to counteract the agenda of International Oil Companies (IOCs) and prioritise supply security, thereby enhancing system integrity. The SANPC's recent acquisition of the dormant SAPREF refinery, capable of producing 180 000 barrels of oil per day, signals a pivotal moment for South Africa's energy landscape. If revitalised, this facility could contribute significantly to national energy production or serve as the foundation for constructing a mega refinery with the capacity to process between 450 000 to 600 000 barrels daily. This shift would further diversify energy sources and reduce the country's reliance on imported oil. Mineral Resources and Petroleum Minister Gwede Mantashe reiterated the urgency of addressing the declining local refining capacity. He noted a significant shift since 2009, with fuel imports rising 11% year-on-year, predominantly driven by a diminishing local refinery output against a backdrop of growing demand for refined products. In 2022, local refining accounted for less than 35% of consumed finished products, a sharp decline from the approximately 80% in 2010.
The South African
26-05-2025
- Business
- The South African
SANPC: South Africa's newest state-owned enterprise open for business
Minister of Mineral and Petroleum Resources Gwede Mantashe has officially launched the South African National Petroleum Company (SANPC), declaring it 'open for business' and ready to welcome both local and international investors. Speaking at the launch ceremony in Johannesburg last Friday, Mantashe said the formation of the SANPC marks a pivotal step toward enhancing the country's energy security, reducing reliance on fuel imports, and managing South Africa's petroleum assets more effectively. The new state-owned enterprise (SOE) is the result of a merger between three key entities: PetroSA, iGas, and the Strategic Fuel Fund Association. 'The real issue is ensuring energy security in the country,' said Mantashe. 'In the wake of evolving global trends, including the shift away from fossil fuel usage, the SANPC will operate in an increasingly volatile, unpredictable, and polarised world.' Mantashe emphasised that despite global energy transitions, the demand for fossil fuels will continue to rise, particularly in developing economies like South Africa. 'Reviving PetroSA is important, SAPREF is important, and if there are people who want to partner with us… we are open for business,' he declared. 'We are open for partnerships, and we are open for people who want to invest.' The SANPC is expected to take a central role in strategic planning, coordination, and governance of the petroleum sector. Its overarching mandate includes: Supporting sustainable development Driving inclusive economic growth Investing in local refining capacity Reducing the country's import dependency for petroleum products To ensure the company can become self-sustaining, Mantashe urged it to leverage strategic partnerships and national energy capabilities. The Minister said that good governance would be the backbone of the new entity's success. 'To enable the entity to deliver on its mandate, we had to ensure good governance… hence, we swiftly appointed the board of directors, an interim CEO, and non-executive directors in April last year,' he noted. Since then, Mantashe said progress has been made in establishing governance structures and resolving legacy issues. 'For SANPC to succeed, it must have strong leadership with vision and the ability to develop managerial capacity. Employees must embrace a new culture of collaboration, transparency, and teamwork,' he added. The launch of the SANPC signals a renewed focus on domestic energy capacity, as South Africa grapples with the global energy transition and the need for long-term economic stability. Mantashe concluded with a call for financial prudence and innovation. 'A task at hand for all of us is to ensure that the entity remains financially sustainable and independent in order to fulfil its developmental mandate.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
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)
