Latest news with #SouthAfricanNationalPetroleumCompany
Business Recorder
21-05-2025
- Business
- Business Recorder
South Africa wants $100 a barrel oil before selling more crude stocks
CAPE TOWN: 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. Oil prices jump more than 1% on Middle East supply fears '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.
The Citizen
18-05-2025
- Business
- The Citizen
Here's why it's a good thing the government is nationalising petrol
The South African National Petroleum Company (SANPC) was launched to try to secure South Africa's energy security. In the 2013 Norwegian winter, I still felt like having a crisp, fresh beer. At about an equivalent of R100 a can, I still wanted that beer. When I found out why it was so pricey, I wanted that beer even more. It took a while to put the obvious together, but after realising that every bottle store was called Vinmonopolet, it wasn't long before learning that the Norwegian government has a monopoly on selling booze from a shop. It turns out that there's hardly a reason to bother with the sin tax in Norway. Never mind nationalising banks and mines. Imagine the outrage if South Africa nationalised the breweries and failed to deliver the beer. And you cannot make a delivery without the fuel, now, can you? So, a good step will be taking over the petrol. Since we've already seen that the state has not been fantastic at running entities, it's something of a relief to learn that this plan to start selling petrol at the pumps is not going to shut down the private sector, but it's also great to know that more money we spend on petrol will be staying in the country. That's the right direction. You can moan about foreign entities doing things in the homeland, but until you do something about it, Shell will Shell. So let's have more local companies competing to sell us petrol. ALSO READ: National Petroleum Company's bold plan to secure SA's energy security But there's a lesson here. While we might not have our own car brand of any renown, battery developer, or hardware chip manufacturer, we've actually done a great job of keeping what we have in-house. Our top banks are South African, as are our major broadcasters. A bulk of our top retailers do their thing from our shores, and those with overseas bosses tend to be doing it better here than there. We've actually been able to do a lot of good things for ourselves down here. When we've failed, for a big part, it's been because of a single entity or shareholder… the state. But business can work here, so if the state wants to try its hand at filling the gaps left by a fleeing multinational, there's little reason why it shouldn't work outside the governance being bad. Naturally, there'll be a temptation to say, 'goodie gumdrops, another state entity for us to bail out' , but this is the exciting bit. It's too easy to think they'll get bailed out because bailouts don't just happen. When was the last time you noticed a state entity that didn't hold a monopoly get a bailout? You don't even remember SA Express — because we had private airlines that could do a better job, there was no way the state could justify throwing money at them. It's not the same as Eskom, which needs to keep the lights on. That's why the postal service is panicking because couriers are doing their jobs way better and their continued existence may not justify another bailout. If whatever they call this new local petrol shop is going to fail, it's not going to do it off of our dime. This is one of the few situations where we have little to lose in the game, so best believe it's time to enjoy it. If the state can make more of its own money and provide less risk to the populace, that's fantastic. If it can enter a profitable and worthy market that we'd need anyway and plug money from leaking overseas, all the better. What's exciting about this is that they can try it in the knowledge that if they fail, it's not like anybody is going to be waiting to write them a cheque because gone are those days. NOW READ: Guess who's woken up to the glory of nuclear energy?
Daily Maverick
08-05-2025
- Business
- Daily Maverick
SA clams up on its hunt for oil in world's largest animal migration corridor
The South African government petroleum agency has refused to provide details of its controversial oil and gas exploration project slap-bang in the middle of the world's largest animal migration path. Millions of antelope migrate through the wetlands and grasslands of South Sudan every year in a global wildlife spectacle that outshines the more famous wildebeest and zebra migration of East Africa. Whereas the Serengeti-Mara migration in Tanzania and Kenya involves around 1.3 million wildebeest and several hundred thousand zebra and gazelles, the annual Great Nile migration in South Sudan boasts between five and seven million antelope species, including kob, tiang, gazelle and reedbuck. It is the 'largest known land mammal migration on Earth' according to the Convention on Migratory Species (CMS), a United Nations conservation treaty to safeguard the world's fast diminishing migratory species. And yet it is here — in the very heartland of this spectacular animal migration route and Africa's largest wetland (the Sudd) — that the South African National Petroleum Company (SANPC) is hoping to strike oil and to also support the development of new petroleum refineries and export pipelines at a potential cost of up to $1-billion (more than R18-billion). Project maps depict a three-phase exploration process that could lead to production wells, pipelines, refineries and other infrastructure located within the Badingilo National Park and large areas of riverine and grassland habitat used by animals circuiting between the Boma, Shambe and Gambella national parks. Last year, contractors were also invited to bid on redrilling an old oil exploration well in the Jonglei region. It was abandoned in 2007 after the drilling equipment got stuck 2,200m underground at Kedelai, in the environmentally-sensitive floodplain of the White Nile River. The more recent exploration project is part of an agreement between the South Sudan government's Nile Petroleum company and South Africa's Strategic Fuel Fund (SFF) — now part of the newly established SANPC. Various feasibility studies and exploration projects have been rumbling on behind the scenes since former energy minister Jeff Radebe announced in 2019 that South Africa and South Sudan had signed an exploration and production sharing agreement and were engaged in talks to set up a 60,000 barrel per day refinery to supply oil products to the local market in South Sudan, as well as to secure exports to Ethiopia and other neighbouring countries. A government media release at the time stated that the SA Department of Energy had ' pledged to invest $1-billion into South Sudan's petroleum industry, with the aim of securing affordable energy supplies for South Africa'. That announcement came shortly before High Court Judge Owen Rogers found that attorney and former acting SSF chief executive Sibusiso Gamede had been paid more than R2,6-million in bribes by companies in Dubai and elsewhere for his role in facilitating the sell-off of South Africa's strategic stock of 10 million barrels of crude oil early in 2016. Radebe attempted to backpedal swiftly on the potentially massive costs of the South Sudan venture after the Sunday Times published a news article in March 2019 under the headline: 'Jeff Radebe's dodgy $1bn oil deal'. In response, Radebe issued a detailed statement in which he said: 'The stated $1-billion is the estimated cost of the full project including the oil block, pipeline and refinery, which will be spread over a period of 10 years. A project of this magnitude passes through various phases of approval and execution.' Recalling the ANC's historic relationship with the Sudanese People's Liberation Army in fighting for their respective political liberations, Radebe said that the $1-billion was just 'an indicative figure at this stage. 'As with similar projects of this nature, upon completing the feasibility study, the project has a potential to attract other strategic partners and/or investors, which may include South Sudanese and South African companies.' Read Radebe's full response to that article here. Daily Maverick has requested details of the state entity's total expenditure in the South Sudan exploration venture over the last six years, but SANPC spokesperson Jacky Mashapu did not provide any figures. Daily Maverick also requested copies of any environmental and social impact assessment (ESIA) reports on the exploration project, at least one of which was commissioned by the SFF, but Mashapu asserted that these reports were 'confidential'. And the SFF declined to provide any details of a recent agreement it signed with the British-based Wildcat Petroleum group (which published a statement though the London Stock Exchange on 20 March confirming that it had signed a collaboration agreement with the SFF to 'evaluate' the South Sudan petroleum assets recently relinquished by the Malaysian multinational oil and gas company Petronas). In a brief statement in August 2024, Petronas attributed its decision to bail out of South Sudan to long-term investment strategies 'amid the changing industry environment and accelerated energy transition'. But Wildcat chairperson Mandhir Singh hailed the new deal with South Africa as 'excellent news for Wildcat in its endeavours to secure a deal in South Sudan. 'A tie-up with the SFF can only enhance Wildcat opportunities as the SFF is one of only a handful of companies that has successfully signed a petroleum deal in South Sudan since the country gained independence. They have a well-established technical team in Juba which can assist Wildcat in any technical work it needs to conduct.' However, Mashapu said the Wildcat deal was subject to a non-disclosure agreement and 'as a result, we cannot disclosure [sic] anything for now.' Regarding our request for a copy of the environmental and social impact report, Mashapu stated: 'The report is confidential and as it is yet not published by the Ministry of Petroleum (MOP), South Sudan, on their website, hence the content cannot be provided for any publication and use. 'The study and analysis of samples (for the first phase of the exploration project) is completed and results were presented and approved by our partner, Nilepet. The communication is being sent to MOP South Sudan to provide us a time slot suitable so the team can present and submit the report to MOP for public consultation and approval.' (South Sudan's petroleum minister, Puot Kang Chol, was arrested two months ago, while Vice-President Riek Machar was also placed under house arrest after being accused of plotting rebellion against long-time political rival President Salva Kiir.) No details are available on who conducted the impact assessment study or how much it cost, though the South African taxpayer-funded SFF advertised the contract in October 2023, stating that tender documents could be downloaded from the National Treasury's e-Tender publication portal. The Secretariat of the Bonn-based Convention on Migratory Species (CMS) confirmed that it had been unable to obtain a copy of the environmental impact study, while the South Sudan Wildlife Service head, General Khamis Adieng Ding, did not respond to requests for comment. 'We are aware that the ESIA study was conducted in May-July 2024, but unfortunately we have not seen it because the report has not been made public,' said a spokesperson for the CMS Secretariat. The CMS Secretariat has raised several concerns about the South African/South Sudan exploration project, which covers a massive 47,000km2 area known as Block B2, north of the capital, Juba. According to the CMS Secretariat, the Block B2 oil extraction plan 'poses a pressing concern' because it covers living spaces critical for both the kob and tiang migrations. 'Without careful and informed planning, the oil exploration set to begin in 2025 could seriously disrupt wildlife migration, increase human encroachment, and escalate illegal hunting. The rising incidence of illegal tiang harvesting along roads already shows how essential it is to plan infrastructure with wildlife protection in mind. 'Approximately five million kob and 400,000 tiang, alongside other hooved mammals also known as 'ungulates', undertake complex, long-distance journeys to access essential wet and dry-season habitats annually,' said the CMS, citing newly released migration maps developed by the Global Initiative on Ungulate Migration. Their routes take them between Badingilo and Boma National Parks in South Sudan. Some also migrate further north to Gambella National Park in Ethiopia, an important dry-season refuge, particularly for kob, from February to May. In response to these concerns, the SANPC said: 'We, as a responsible operator, will take due care for any interference in migration of fauna and flora regarding its magnitude, timing, and preventative measures which are required to be taken to make minimum impact on their movement. The issue was well dealt [with] in the ESIA report, and mitigation plans are being proposed, which will be adhered to while operating in the area.' According to a Unesco World Heritage Site nomination fact sheet, the Sudd has a very high carrying capacity for wild herbivores that depends on unconstrained foraging movement across an intact and functioning landscape. As a result, the Sudd and adjoining wetlands and grasslands are still able to support two of the largest ungulate migrations in the world, covering an area seven times larger than Serengeti National Park. But if South Africa strikes oil, that picture is almost certain to change. DM
IOL News
01-05-2025
- Business
- IOL News
402 staff members join SANPC as it aims to lead South Africa's energy future
The South African National Petroleum Company (SANPC) has announced the successful completion of the first phase of its employee transfer process, welcoming 402 staff members from the Central Energy Fund's subsidiaries: iGas, PetroSA, and the Strategic Fuel Fund (SFF). SANPC said that this milestone marks a pivotal step in establishing the company as a dominant force in South Africa's energy sector. In a statement issued on Wednesday, SANPC's spokesperson Jacky Mashapu emphasised the significance of this achievement. 'This marks a historic leap forward in operationalising SANPC as a true South African Energy Champion,' Mashapu said. 'As we consolidate our internal resources and expertise, we are committed to powering South Africa's energy future and supporting key government priorities.'
Zawya
15-04-2025
- Business
- Zawya
One Month to Invest in African Energy (IAE) 2025: Africa's Energy Licensing Surge to Take Center Stage
With just one month to go to the Invest in African Energy (IAE) 2025 forum, the event is shaping up to be a milestone moment for upstream investment on the continent. IAE 2025 will spotlight Africa's resurgence in exploration activity – with over 150 oil and gas blocks on offer across more than 10 countries on the continent. Backed by national oil companies (NOCs), regulators and government ministries, the forum stands to connect international capital and energy opportunities to investors and developers. Africa's 2025 licensing calendar is one of the most active in recent years, with countries across North, West, Central and East Africa opening acreage and reforming terms to attract global explorers. Dozens of offshore and onshore blocks are being offered through both direct negotiations and competitive bidding, with new rounds in Libya, the Republic of Congo, Liberia, Sierra Leone, Algeria and Angola, among others. A central focus of the upcoming forum, these offerings are supported by revised fiscal frameworks, comprehensive seismic data and digitalized platforms aimed at streamlining investor engagement and lowering entry barriers. IAE 2025 ( 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@ The IAE 2025 program will feature dedicated sessions that highlight new opportunities, policy reforms and strategic deals. An Energy Reform Briefing on Sierra Leone will explore the structural changes aimed at enhancing the country's competitiveness in upstream oil and gas. A high-profile session from the newly established South African National Petroleum Company (SANPC) will offer insight into the entity's vision, followed by a live investor pitch. An 'In Conversation' dialogue with TotalEnergies will explore the major's evolving investment priorities in Africa and its role in the continent's energy transition. Meanwhile, the Premier Invest Deal Room will showcase six major upstream transactions, providing a curated environment for qualified investors, lenders and project sponsors to engage in due diligence and financing discussions. IAE 2025 will welcome government officials, companies and financiers. Confirmed ministers include the Republic of Congo's Minister of Hydrocarbons, Bruno Jean-Richard Itoua; Nigeria's Minister of State for Petroleum Resources (Gas), Eperikpe Ekpo; Gabon's Minister of Petroleum, Marcel Abéké; Mauritania's Minister of Petroleum and Energy, Mohamed Ould Khaled; Senegal's Minister of Energy, Oil and Mines, Birame Soulèye Diop; Guinea-Bissau's Minister of Energy, Malam Sambu; and Liberia's Minister of Mines and Energy, Wilmot Paye. Industry participation ranges from leading majors such as TotalEnergies, Eni and Perenco, to NOCs including SNPC, SANPC, Gabon Oil Company and Uganda National Petroleum Company. Junior explorers and independents like Afentra, Trident Energy, Oando, UTM Offshore and EcoAtlantic will also join the conversation, alongside key players in technology and finance such as Technip Energies, NOV, SLB, Wärtsilä, Africa Finance Corporation, Rand Merchant Bank and the Trade and Development Bank. Together, leaders from both public and private sectors will engage in high-level discussions on topics ranging from financing the next generation of energy projects, to optimizing value from mature and mid-life assets, as well as transforming power generation across the continent. As global investors seek scalable growth opportunities and secure supply options, Africa is presenting a compelling case for upstream development and gas-led industrialization. With one month to go, IAE 2025 offers a timely and focused opportunity to engage with the people, projects and policies shaping the next chapter of African energy. Distributed by APO Group on behalf of Energy Capital&Power.
