CEF Transfers Assets to South African National Petroleum Company

South Africa’s state-owned Central Energy Fund (CEF) has officially handed-over its assets to the country’s newly-incorporated national oil company (NOC): the South African National Petroleum Company (SANPC). The assets were transferred via a Lease and Assign Model.

CEF will also mobilize R5 billion in funding to support the operationalization of the SANPC. The funding will be made available in a phased approach, ensuring the SANPC can grow and optimize the use of its assets.

“The handing over of these assets through lease and assign model and funding would enable SANPC Board and management to fully effect the operationalization of a commercially viable company to be a game-changer as well as supporting the government’s broader strategic initiatives in fostering regional integration on matters related to energy value chain,” stated Sipho Mkhize, Chairperson, SANPC.

The SANPC started operating as a fully-fledged subsidiary of the CEF in April 2025, following the merger of CEF subsidiaries iGas, Strategic Fuel Fund and PetroSA. On April 30, 2025, CEF concluded the first phase of employee transfers, with 402 staff welcomed from the three CEF subsidiaries. The remaining 620 employees will be transferred to the SANPC in the second phase, following asset turn-around and optimization. By integrating the subsidiaries, the government aims to improve operational efficiency, enhance scale and market share and establish a commercially-driven NOC in South Africa.

“This is not just a technical or financial transition – it is about ensuring that the SANPC is built on a foundation of operational efficiency, financial strength and social responsibility. A detailed baseline assessment showed that this merger has a potential to improve efficiencies and strategic investments by unlocking market opportunities worth R95 billion at the time, and thus yielding R1.5 billion in synergy optimization,” stated Ayanda Noah, Chairperson, CEF Group.