South African National Petroleum Company is Open for Business

The South African National Petroleum Company (SANPC) has started operating as a fully-fledged subsidiary of the Central Energy Fund (CEF), following the signing of a critical agreement with both organized labor and non-unionized employees. Although the official go-live was delayed by a week from its intended April 1, 2025 date, the agreement marks a major milestone in the operationalization of SANPC.

The SANPC was formed through the merger of three state-owned entities – iGas, PetroSA and the Strategic Fuel Fund. The company will function under a lease and assignment model, allowing the SANPC to lease select assets from the merging entities while isolating PetroSA’s legacy liabilities and the operational challenges at its gas-to-liquids refinery in the Western Cape.

According to the SANPC, as part of the first phase of the transition, 402 employees out of a total 1,022 have already moved to SANPC. The remaining 620 employees will be transferred in the second phase, once those assets have been optimized and stabilized.

The formation of SANPC is expected to enhance South Africa’s energy security, reduce reliance on imported petroleum products, improve the national balance of payments and retain critical energy sector skills.