Minister of Mineral and Petroleum Resources Gwede Mantashe has officially launched the South African National Petroleum Company (SANPC), declaring it “open for business” and ready to welcome both local and international investors.
Speaking at the launch ceremony in Johannesburg last Friday, Mantashe said the formation of the SANPC marks a pivotal step toward enhancing the country’s energy security, reducing reliance on fuel imports, and managing South Africa’s petroleum assets more effectively.
The new state-owned enterprise (SOE) is the result of a merger between three key entities: PetroSA, iGas, and the Strategic Fuel Fund Association.
“The real issue is ensuring energy security in the country,” said Mantashe.
“In the wake of evolving global trends, including the shift away from fossil fuel usage, the SANPC will operate in an increasingly volatile, unpredictable, and polarised world.”
Open for partnerships
Mantashe emphasised that despite global energy transitions, the demand for fossil fuels will continue to rise, particularly in developing economies like South Africa.
“Reviving PetroSA is important, SAPREF is important, and if there are people who want to partner with us… we are open for business,” he declared.
“We are open for partnerships, and we are open for people who want to invest.”
Mandate and strategic vision
The SANPC is expected to take a central role in strategic planning, coordination, and governance of the petroleum sector.
Its overarching mandate includes:
- Supporting sustainable development
- Driving inclusive economic growth
- Investing in local refining capacity
- Reducing the country’s import dependency for petroleum products
To ensure the company can become self-sustaining, Mantashe urged it to leverage strategic partnerships and national energy capabilities.
Focus on governance and leadership
The Minister said that good governance would be the backbone of the new entity’s success.
“To enable the entity to deliver on its mandate, we had to ensure good governance… hence, we swiftly appointed the board of directors, an interim CEO, and non-executive directors in April last year,” he noted.
Since then, Mantashe said progress has been made in establishing governance structures and resolving legacy issues.
“For SANPC to succeed, it must have strong leadership with vision and the ability to develop managerial capacity. Employees must embrace a new culture of collaboration, transparency, and teamwork,” he added.
A new chapter in energy security
The launch of the SANPC signals a renewed focus on domestic energy capacity, as South Africa grapples with the global energy transition and the need for long-term economic stability.
Mantashe concluded with a call for financial prudence and innovation.
“A task at hand for all of us is to ensure that the entity remains financially sustainable and independent in order to fulfil its developmental mandate.”
How confident are you that this newest state-owned enterprise won’t need bailing out in the years ahead?
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