Date: 9 April 2025

Johannesburg- The South African National Petroleum Company (SANPC) and its holding company
Central Energy Fund (CEF) today announced that it has reached an agreement with both organized
labour and non -unionized employees of merging entities (iGas, PetroSA and SFF) on issues related
to its go-live on the 1st April 2025

The signed agreement paves way for the SANPC to start operating as a fully-fledged subsidiary of
the Central Energy Fund (CEF), despite a week’s delay. This legal status to operate as a new State-owned Petroleum Company of South Africa, is in line with the National Treasury’s approval in terms
of the s51(g) (h) of the Public Finance Management Act of 1999.

The incorporation of the SANPC as a subsidiary of CEF Group of Companies will be an interim
measure until the National Petroleum Bill is promulgated into law. However, for the SANPC to kick
start its operations, it would use the lease and assign model wherein certain assets of the merging
entities will be leased to the new company.

The proposed Lease and Assignment model provides the opportunity to strategically select what is
leased and assigned to the SANPC by ring-fencing or isolating Petrosa’s legacy assets such as
decommissioning liability and current operating challenges of the Gas to Liquid Refinery.
This approach will improve the financial risk profile for SANPC to secure funding as well as provide a
legally sound solution to deal with the constraints associated with the non-profit status of SFF.

To that effect, we expect that the SANPC will minimize the risk exposure to external dependency for
finished products that threatens our security of energy supply in the country, impact positively the
balance of payments for the country and keep associated industry and core skills inland.
As part of the approved business case to operationalize the SANPC, a total of 402 employees out of 1022 employees of the merging entities would transfer during the first phase of the merger, which is
effective immediately.

All other remaining employees (620 in total) associated with ringfenced assets & operations within
Legacy entity (i.e. PetroSA) would transfer in the second phase of the project once these assets have
been turned around & optimized with the support of SANPC and CEF as the holding company.
Meanwhile, work has begun to address the legacy assets which include the re-instatement of the Gas
-To- Liquids (GTL) Refinery and the decommissioning liability methodology and provisioning as well
as constraints associated with the non-profit status of SFF.

Once all the matters relating to these legacy assets are resolved, they would be ready for transfer to the SANPC.
As we consolidate our internal resources and expertise to power SA’s energy future, we would ensure
that no jobs are lost, and no is left behind.

About SANPC

The South African National Petroleum Company (SANPC) is the newly established State-Owned
Company. This company was formed after the merger of three of the Central Energy Fund (CEF)
subsidiaries, iGas, PetroSA and Strategic Fuel Fund.

It is poised to become a leading player in South Africa’s energy sector, ensuring energy security,
driving modern technologies, developing, and enabling essential infrastructure, fostering strategic
partnerships, and propelling social and economic development.

The SANPC is also expected to oversee strategic planning, coordination, and governance of the
country’s petroleum resources, contributing to the country’s sustainable development and economic
growth.

For more information, please contact:

Jacky Mashapu
Executive: Communications
South African National Petroleum Company (SANPC)
Mobile: 081 011 7528
Email: jacky.mashapu@sa-npc.co.z