New state petroleum firm aims to empower marginalised groups

Transformation in this sector has been a burning issue

- BY Mpho Sibanyoni

The chief executive officer of the newly launched state-owned South African National Petroleum Company (SANPC), Godfrey Moagi, says the company will have to develop a “proper transformation strategy”.

The SANPC is a merger of iGas, PetroSA and Strategic Fuel Fund, which took place in Johannesburg on Friday.

Minerals and petroleum minister Gwede Mantashe said the merger would "allow the state to meaningfully participate in the oil and gas developments by optimising the operating assets and financial resources of these entities".

"For far too long, the South African refining capacity has been largely held by international oil companies, with many of them pulling out of manufacturing, and many small to mid-scale refineries being converted to storage units.

"South Africa's liquid fuels supply and economic stability are increasingly vulnerable," Mantashe said.