The Central Energy Fund (CEF) has said it will start a process to consolidate its three subsidiaries, PetroSA, Strategic Fuel Fund and Igas to establish a National Petroleum Company of South Africa next month in an effort to create a commercially viable new company.
According to CEF CEO Dr Ishmael Poolo the fund has selected a consortium of external advisers to help with the consolidation expected to cost ZAR 65M.
This decision which was reported by the board in June is a culmination of a policy statement made by CEF’s shareholder, the Minister of Mineral Resources and Energy, Mr Gwede Mantashe at the Portfolio Committee on Mineral Resources and Energy held on 7 May 2020. This policy statement was also endorsed by Cabinet’s approval on 10 June 2020, paving a way to appoint a professional restructuring company specializing in mergers to investigate the most viable model to establish a National Petroleum Company.
The rationalisation of these subsidiaries into one single National Petroleum Company would be on the basis that each company be properly structured so as not to transfer operational and financial inefficiencies into the new entity. Key features of the rationalisation plan will be anchored on the following three phases:
Source: OilnewsKenya via CrudeMix Africa