R/€ = 14.02
R/$ = 11.04
Au 1247.30 $/oz
Pt 1272.00 $/oz
Jun 18, 2003
PetroSA plans to sell 9% of Sable lease to BEEBack
Dallas|Natal|Africa|African Harvest Capital|Pioneer Natural Resources|PROJECT|Resources|Africa|South Africa|USD|Corporate Services|Mining|Oil|Services|Eastern Cape|Mossel Bay|Western Cape|Modise Ramahala|ModisenRamahala|Eastern Cape
© Reuse this South Africa’s national oil company, PetroSA, yesterday announced its intention to sell a 9% stake in its Sable Mining Lease project to a black economic empowerment (BEE) partner – a deal it aims to conclude before the end of the year.
The 9% share, said to be worth between $12-million and $14-million, is intended for a group or consortia in the rural areas of the country, with a bias towards economically poorer provinces, such as the Eastern Cape, Limpopo, Kwazulu-Natal and the Western Cape.
PetroSA maintains that this is not a financially-driven deal and the successful bidder would not necessarily be the highest one, but one that is most representative in terms of the country’s broad based BEE strategy.
In 1998, the company, through a joint participating agreement with Pioneer Natural Resources, established the Sable Mining Lease, a field located 135 km southwest of Mossel Bay.
PetroSA was appointed operator of the lease and holds a 60% working interest in the field, while the remaining 40% is held by Dallas-based Pioneer.
“In line with our BEE strategy, PetroSA obtained the unilateral right to transfer 9% of the Sable Mining Lease interest, held by PetroSA, to a South African company,” said Modise Ramahala, GM: corporate services of PetroSA.
The company is looking at facilitating funding for the successful bidder, as well as at assisting the bidder with participation in the project.
Sable is estimated to have recoverable reserves in the region of 18-million to 25-million barrels of oil, with initial peak rate production of 30 000 to 40 000 barrels of oil a day. The expected life of the project is three to five years.
PetroSA announced that it has, through a competitive tender process, appointed transaction advisors for the sale. The advisors include EY Corporate Finance, African Harvest Capital and Deneys Reitz Attorneys.
The transaction advisors are to manage the tender, as well as the conclusion of all necessary documentation pertaining to the transaction.
The deal seeks to include broad based groups of historically-disadvantaged individuals (HDI), as well as HDIs who have not materially benefited from current empowerment initiatives, including rural communities, nongovernmental organisations, cooperatives, youth and disabled people.
A national public awareness campaign, which will include presentations by the transaction advisors and PetroSA executives, is set to begin at the end of June. The campaign will include further details of the Sable investment opportunity and the proposed transaction price.
PetroSA is targeting October 17 as the date for the announcement of preferred bidders and production at the field is due to start at the end of the year.
Edited by: Martin Czernowalow© Reuse this Comment Guidelines (150 word limit)
Other Gas News
The implementation of a comprehensive fire and gas detection and proactive emergency shutdown (ESD) system solution is essential in ensuring the protection of active plants and associated assets of substantial value, and is invaluable in averting any type of...
Updated 56 minutes ago Despite several real estate investment trusts (REITs) extolling the virtues of portfolio diversification, Resolution Capital Australia MD Andrew Parsons has cautioned against this strategy, advising trusts to rather simplify and specialise their asset portfolio....
Updated 2 hours 20 minutes ago Global crude steel output in September, at 134.4-million tonnes, was marginally lower than the 134.5-million tonnes produced in September 2013. According to the World Steel Association (worldsteel), China produced 67.5-million tonnes of crude steel in September,...
Updated 5 hours ago Stand a chance to win a CAT Phone. Subscribe to Engineering News & Mining Weekly at a 30% discounted rate. The weekly print magazines will be posted to your preferred postal address. Also gain online access to: Project Browser - providing an overview of latest...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
Next ArticleCoega IDZ’s first ASU to come on line