South Africa to Establish New State-Owned Petroleum Company

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South Africa to Establish New State-Owned Petroleum Company

Loveworld / 6 hours

September 23, 2024

1 min read

The South African National Petroleum Company (SANPC) is poised to be a transformative force in the country’s energy sector. By ensuring a stable energy supply, promoting new technologies, and building essential infrastructure, SANPC aims to contribute significantly to economic growth.
Approved to operate under the Public Finance Management Act of 1999, SANPC was announced by President Ramaphosa in his 2020 State of the Nation Address as part of a broader strategy to streamline state-owned enterprises. The Cabinet’s approval in June 2020 to merge iGas, PetroSA, and the Strategic Fuel Fund (SFF) reflects this commitment to efficiency.
While iGas and SFF are ready for full integration into SANPC, PetroSA’s remaining divisions will undergo further evaluation. Initially, SANPC will implement a ‘Lease and Assign’ model, leasing certain assets to manage financial risks and address the challenges posed by outdated infrastructure, particularly within PetroSA’s operations.
With an estimated market opportunity of R95 billion, SANPC is optimistic about securing energy, fostering innovation, and driving social and economic progress in South Africa. As it navigates these changes, SANPC is set to play a crucial role in shaping the future of the nation’s energy landscape.