Share

PetroSA saved (for the moment)

State-owned oil company PetroSA was been saved from an imminent R7.4 billion cash crunch by the minister of environmental affairs, Edna Molewa.

On Friday Molewa gazetted an amendment to the financial provisioning regulations of the National Environmental Management Act.

It gives companies with offshore oil or gas exploration or production rights granted before 2015 an additional five years to put up the cash for their rehabilitation obligations. Up to 2024 these rights holders will be deemed to be compliant, even if they are not.

The deadline had been set for 2019, and PetroSA was virtually guaranteed to require a bailout as a result.

The company was R7.4 billion short on its R9.6 billion rehabilitation liability, and had total cash of only R2.4 billion at the end of its previous financial year.

It also suffered a net loss of R1.4 billion.

An official familiar with the company told City Press the amendment will help, but also revealed that PetroSA “has bigger problems”.

The oil rights to which the rehabilitation funding relates are old, non-producing assets, which means PetroSA still needs to find the money somewhere else.

The government owns PetroSA via the Central Energy Fund, which would be obliged to provide cash if and when PetroSA is forced to make good on its liabilities.

PetroSA spokesperson Tumoetsile Mogamisi could not respond on Friday, and the department of environmental affairs did not respond to questions. - Dewald van Rensburg

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders