R/€ = 15.15Change: -0.13
R/$ = 14.28Change: -0.14
Au 1072.00 $/ozChange: -0.05
Pt 852.50 $/ozChange: 7.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Jun 18, 2003

PetroSA plans to sell 9% of Sable lease to BEE

© 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 Energy News
Article contains comments
Up to $2-trillion in petroleum and coal projects will not be needed if the world takes action to limit warming of the planet to 2 degrees Celsius, according to a report released this week ahead of a global climate summit in Paris. The report adds to a string of...
Industrial energy and supplies group enX has raised revenues by 51% to R883-million for year ended August 31, citing healthy divisional growth and a strong performance by the new fuel segment, which contributed nearly a quarter of group revenues. Adjusted earnings...
Article contains comments
Drilling under way on the Free State property
Alternative energy investment holding company Renergen expects its natural gas venture in the Free State to begin producing revenues during early 2016 when a bus company starts using its gas to operate a new fleet of compressed natural gas (CNG) vehicles, which will...
Latest News
Updated 6 hours ago Business confidence has dropped by a full 15 points over the past year to reach its lowest level in five years, the latest Rand Merchant Bank (RMB)/Bureau for Economic Research (BER) Business Confidence Index (BCI) has shown. After falling from 43 to 38 in the third...
Updated 6 hours ago JSE-listed beverage, food and nonperishable packaging manufacturer Nampak’s basic earnings a share rose 3% to 228.3c for the year ended September 30, from 221.7c the year before. The company also reported an increase in group revenue and trading profit of 13%, to...
Updated 6 hours ago As Parliament mulls the new regulatory framework to govern South Africa’s financial industry, the sector is preparing for its promulgation; however, it will require a complete “rethink” of the way regulators guide financial institutions. The tabling of the Financial...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
BARRY DWOLATZKY The CPD programme provides advanced skills required locally, and provides a stepping stone to Wits University’s Master of Engineering degree in software engineering
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96