Zuko Komisa

On Wednesday, the South African National Petroleum Company (SANPC), a new state-owned petroleum business, was established as a result of a policy statement made by President Cyril Ramaphosa.
Following the amalgamation of iGas, PetroSA, and the Strategic Fuel Fund, subsidiaries of the Central Energy Fund (CEF), the SANPC was established. The Public Finance Management Act of 1999’s s51(g)(h) has given the firm permission to begin operations.
Following President Ramaphosa’s announcement in the State of the Nation Address (SONA) in February 2020 that the government intended to repurpose and “rationalize” state-owned firms to boost growth and development in South Africa, the state-owned corporation was formed.
“The rationalization of these subsidiaries into one single SA National Petroleum Company is on the basis that each company be efficiently structured so as not to transfer operational inefficiencies and going concern issues into the new entity.
“Out of the three merging entities, only iGas and SFF are financially viable to be merged into the new entity subject to key legal requirements. However, following a rigorous assessment of the PetroSA business, the only financially viable division to be merged into the new company is Trading and the Ghana asset,” the South African National Petroleum Company (SANPC) said in a statement on Wednesday.
According to SANPC, the combined strengths of the three subsidiaries, a solid financial position, and robust stakeholder support, the SANPC is well-positioned to leverage these benefits and seize the R95 billion market opportunity
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