South Africa is one step closer to having a National Petroleum Company after the Central Energy Fund (CEF) board gave management the green light to start a process to merge PetroSA, Strategic Fuel Fund and Igas.
Cabinet this month, endorsed a plan by the Department of Mineral Resources and Energy to merge the entities.
A professional restructuring company specializing in mergers will be appointed to investigate the most viable model to establish a National Petroleum Company.
The CEF Group CEO, Ishmael Poolo, said fast-tracking the rationalisation of these three subsidiaries into a National Petroleum Company will position the group to become an integrated and diversified energy company.
“South Africa needs a very strong and agile energy company to be able to compete and advance key components of the National Development Plan aimed at creating a capable state as well as supporting government to address the triple challenge of unemployment, poverty and inequality,” said Poolo.
Government hopes that a merged entity would lead to enhanced cost reductions, integrated common systems and processes.
