CEF positions itself to take over oil majors’ assets as companies exit South Africa

THE Central Energy Fund (CEF) says it is preparing to absorb fuel infrastructure and other assets from global oil companies that are scaling down operations in South Africa, as part of its strategy to secure national fuel supply and strengthen its downstream footprint.

- BANELE GININDZA

MSABALA added that the CEF had completed a study into the structure of South Africa's fuel distribution network, particularly the Durban corridor, which handles about 70% of national volumes. Reuters

(Reuters)

Acting Group CEO Sifiso Msabala told Parliament that several oil majors, including Shell, have approached the State-Owned Entity with proposals to offload assets as they retreat from the local market. "We have a very clear understanding of how the majors have been behaving in wanting to sell in that space. A number of them are offloading their assets. The State cannot be caught in a situation where the assets are not attended to as we will be the last resort for fuel," Msabala said.

"Some of the acquisitions we are making are in talks with the oil majors who are knocking at our doors to float some of the assets. Our strategy, which is organic and external, talks to us also not paying a premium on acquisition."