No Result
View All Result
Monday, September 25, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Ghana’s total exports decline by 9%

    Cedi depreciates against the dollar by 22.5%

    Financial sector withstood 2022 shocks; positive signs ahead – BoG

    Water shortage to hit parts of Accra; businesses to be affected

    Excise tax amendment shows positive signs; rakes in GHS 140m 

    Ghana records over $200m trade surplus in two months

    Public debt hits GHS 575.5 billion; now 71.9% of GDP

    GEPA poised to achieve over $4bn target for non-traditional exports

    GRA fights off claims of harassing traders; calls for cooperation

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Cedi depreciates against the dollar by 22.5%

    Financial sector withstood 2022 shocks; positive signs ahead – BoG

    Water shortage to hit parts of Accra; businesses to be affected

    Influx of Chinese tanker trucks will kill local businesses – Kwame Jantuah

    GRA fights off claims of harassing traders; calls for cooperation

    Hanno Barkhoff joins Kempinski Hotel Gold Coast City Accra as General Manager

    WTO Director-General calls for ratification of Fisheries Subsidies Agreement

    B5 Plus is an iconic testament of success of 1D1F initiative – K.T. Hammond

    BoG advised me to streamline Menzgold operations – NAM 1

  • TECHNOLOGY

    Genius IT Foundation achieves STEM.org accreditation

    Pharmaceutical Society charged to utilize AI to transform industry

    Apple says iPhone and iPad apps will show up on the vision OS App Store from the get-go

    China launches $41 billion fund to accelerate semiconductor industry

    Digital marketing: Event managers urged to explore growth opportunities

    Govt. urged to commit more investments to enhance AI competencies

    Stakeholders in digital ecosystem charged to do more to protect child privacy

    Cyber hygiene key for public safety – Dr. Albert Antwi Boasiako

    Ban on cryptocurrency still in force – Finance Ministry warns

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Ofori-Atta commends G20 for AU’s inclusion, urges common voice

    Nine ventures announced for Africa Money and DeFi Summit investment showcase

    African Union to launch regional credit rating agency in 2024

    New study reveals alarming food access disparity affecting 650 million Africans

    Global food price index declines in August

    ECO currency challenges: Technical committee attributes delays to external shocks, others

    African leaders emphasize in-continent processing of mineral wealth at climate summit

    Indian investors commit $14 billion to Nigeria, to strengthen several Nigerian sectors

    African Development Bank announces $25 billion pledge to boost climate finance in Africa

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Ghana’s total exports decline by 9%

    Cedi depreciates against the dollar by 22.5%

    Financial sector withstood 2022 shocks; positive signs ahead – BoG

    Water shortage to hit parts of Accra; businesses to be affected

    Excise tax amendment shows positive signs; rakes in GHS 140m 

    Ghana records over $200m trade surplus in two months

    Public debt hits GHS 575.5 billion; now 71.9% of GDP

    GEPA poised to achieve over $4bn target for non-traditional exports

    GRA fights off claims of harassing traders; calls for cooperation

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Cedi depreciates against the dollar by 22.5%

    Financial sector withstood 2022 shocks; positive signs ahead – BoG

    Water shortage to hit parts of Accra; businesses to be affected

    Influx of Chinese tanker trucks will kill local businesses – Kwame Jantuah

    GRA fights off claims of harassing traders; calls for cooperation

    Hanno Barkhoff joins Kempinski Hotel Gold Coast City Accra as General Manager

    WTO Director-General calls for ratification of Fisheries Subsidies Agreement

    B5 Plus is an iconic testament of success of 1D1F initiative – K.T. Hammond

    BoG advised me to streamline Menzgold operations – NAM 1

  • TECHNOLOGY

    Genius IT Foundation achieves STEM.org accreditation

    Pharmaceutical Society charged to utilize AI to transform industry

    Apple says iPhone and iPad apps will show up on the vision OS App Store from the get-go

    China launches $41 billion fund to accelerate semiconductor industry

    Digital marketing: Event managers urged to explore growth opportunities

    Govt. urged to commit more investments to enhance AI competencies

    Stakeholders in digital ecosystem charged to do more to protect child privacy

    Cyber hygiene key for public safety – Dr. Albert Antwi Boasiako

    Ban on cryptocurrency still in force – Finance Ministry warns

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Ofori-Atta commends G20 for AU’s inclusion, urges common voice

    Nine ventures announced for Africa Money and DeFi Summit investment showcase

    African Union to launch regional credit rating agency in 2024

    New study reveals alarming food access disparity affecting 650 million Africans

    Global food price index declines in August

    ECO currency challenges: Technical committee attributes delays to external shocks, others

    African leaders emphasize in-continent processing of mineral wealth at climate summit

    Indian investors commit $14 billion to Nigeria, to strengthen several Nigerian sectors

    African Development Bank announces $25 billion pledge to boost climate finance in Africa

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

SA needs to participate more in its oil and gas infrastructure

bycitibusinessnews
April 14, 2016
in Africa, Southern Africa
Floor hands Jose Garza, left, Jose Salinas, center, and Omar Cano make a pipe connection on Orion Drilling Co.'s Perseus drilling rig near Encinal in Webb County, Texas, U.S., on Monday, March 26, 2012. The Perseus is drilling for oil and gas in the Eagle Ford Shale, a sedimentary rock formation underlying an area of South and East Texas. Photographer: Eddie Seal/Bloomberg *** Local Caption *** Jose garza; Jose Salinas; Omar Cano

Floor hands Jose Garza, left, Jose Salinas, center, and Omar Cano make a pipe connection on Orion Drilling Co.'s Perseus drilling rig near Encinal in Webb County, Texas, U.S., on Monday, March 26, 2012. The Perseus is drilling for oil and gas in the Eagle Ford Shale, a sedimentary rock formation underlying an area of South and East Texas. Photographer: Eddie Seal/Bloomberg *** Local Caption *** Jose garza; Jose Salinas; Omar Cano

Share on FacebookShare on TwitterShare on Whatsapp

South Africa’s first black-owned and operated fuel distributor celebrates its 20-year anniversary this year and, while happy to reflect on the past 20 years, the company is eager to shape the future of the industry in a much more significant way in the years ahead.

“We have stuck it out and grown ourselves to the position we find ourselves in today through hard work and determination, because we have only had larger and more resourceful competitors to deal with since we were founded,” says current Afric Oil CEO, Tseke Nkadimeng.

Worldwide Africa Investment Holdings (later renamed Pembani) was established by the mercurial Phuthuma Nhleko, who established Afric Oil after inking an empowerment deal with Caltex. As documented in Afric Oil’s corporate history ‘Afric Oil 20 years: African Voortrekkers’, the new group “hit the ground running. Being the first of its type, especially in terms of size and by way of being black (a cogent for scarce financial assets or poor access to cash) proved tough. Relying on competition, much larger and multinational, for survival was hardly ideal.”

ADVERTISEMENT

The group built on its success to become the largest distributor of its type in South Africa, and, having assumed scale, it considered opportunities for vertical expansion that included acquiring and building a refinery, or extending its brand into a retail presence. The latter was achieved through the acquisition of Zenex, which was comprised of 200 service stations and gave the company exposure to 6% of the retail market.

Owing to financial constraints, Afric Oil could not pursue [previous CEO] Bheki Shongwe’s suggestion that the fuel group, or its parent company, should consider a refinery of its own as well as build up its storage capacity. This would have not only reduced dependence on competition, but also added another revenue source for the oil company.

“I believe that if we have our own refinery, we’ll start taking a bit of charge,” Shongwe asserted in the year 2000. “And if we build ours, it is going to be new technology and more efficient, therefore the cost of production would be lower.”

While the company continues to operate successfully it, along with other South African firms keen to invest in downstream oil and petroleum infrastructure, have been constrained by the hold the larger multinationals have on the country’s refinery and storage capacity.

The Sapref Refinery in Durban is jointly owned by Shell SA and BP Southern Africa and it leases the land it operates on from Transnet. Also in Durban is the Engen Refinery (Enref). The Natref (National Petroleum Refiners of South Africa) refinery in Sasolburg is jointly owned by Total and Sasol, while the Cape Town refinery is owned by Chevron. The corresponding storage facilities and distribution pipelines are owned by the multi-nationals (or ‘majors’) along with Transnet. There is thus no meaningful participation in the upstream and downstream infrastructure by privately-held South African companies.

The refineries located in Durban are the ones closest to Afric Oil’s largest customer base in Gauteng. The only feasible option in which to build and operate storage facilities of any scale is to have access to the land adjacent to the refineries, something which is not available at present.

But the inability to expand into storage and refining leaves the company in a vulnerable position: it still relies on its larger competitors for inventory – a situation that would be untenable in any other industry.

“Without access to land near, or adjacent to the refineries we are unable to build and operate storage facilities that would allow us to participate in this aspect of the infrastructure,” says Nkadimeng. “So it’s not so much a criticism as it is a question: We are a willing investor, but how can we participate?”

It is hoped that the forum Afric Oil is hosting on April 20 will provide a foundation for meaningful discussion and debate on the part of government, industry and the multinationals, that can provide a roadmap for further investment and development of the country’s oil and gas infrastructure – an absolute vital cog in the ability to grow the economy.

–

Credit: Money Web

Related Posts

Africa

Ofori-Atta commends G20 for AU’s inclusion, urges common voice

bycitibusinessnews

The Minister for Finance, Ken Ofori-Atta says Africa now has the opportunity to contribute to key global issues and push...

Read more

Nine ventures announced for Africa Money and DeFi Summit investment showcase

African Union to launch regional credit rating agency in 2024

New study reveals alarming food access disparity affecting 650 million Africans

ECO currency challenges: Technical committee attributes delays to external shocks, others

African leaders emphasize in-continent processing of mineral wealth at climate summit

Indian investors commit $14 billion to Nigeria, to strengthen several Nigerian sectors

Next Post

Heathrow slot sale earned Kenya Airways Sh5.3 billion

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2023 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2023 Citi Business News - CitiBusinessNews.com by CNR Digital.