September 18 – President Cyril Ramaphosa has announced the formation of a new state-owned petroleum company, the South African National Petroleum Company (SANPC), through the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA, and the Strategic Fuel Fund (SFF). The SANPC is set to play a pivotal role in South Africa’s energy sector, focusing on energy security, technological advancement, infrastructure development, and economic growth.
Key Highlights:
- Formation and Objectives: The SANPC has been established to enhance the management and development of South Africa’s petroleum resources. It aims to drive strategic planning, coordination, and governance, contributing to national development and economic progress.
- Legislative Approval: The SANPC has been granted operational approval under section 51(g)(h) of the Public Finance Management Act of 1999. The formation aligns with President Ramaphosa’s February 2020 State of the Nation Address (SONA), which called for the rationalization of state-owned enterprises to foster growth.
- Merger Details: The SANPC results from the merger of iGas, PetroSA, and SFF, as approved by the Cabinet on June 10, 2020. While iGas and SFF are financially viable for the merger, only PetroSA’s Trading division and its Ghana asset are included in the new entity. The remaining parts of PetroSA will be dealt with separately as legacy assets.
- Operational Model: Initially, SANPC will function as a subsidiary of the CEF Group of Companies. It will use a Lease and Assignment model to incorporate selected assets from the merging entities, isolating PetroSA’s legacy issues such as decommissioning liabilities and operational challenges.
- Strategic Goals: The SANPC is positioned to capitalize on a R95 billion market opportunity. It aims to become a leading player in the energy sector by ensuring energy security, advancing technology, and fostering infrastructure and economic development.
- Future Developments: The SANPC will work to resolve legacy asset issues, including the reinstatement of the Gas-to-Liquids (GTL) Refinery and addressing decommissioning liabilities. Once resolved, these assets will be transferred to SANPC.

The formation of SANPC marks a significant step in South Africa’s efforts to streamline its state-owned enterprises and enhance its energy sector’s efficiency and impact.