The Congress of South African Trade Unions (COSATU) presented its submission in support of the South African National Petroleum Company (SANPC) Bill to Parliament’s Portfolio Committee on Mineral and Petroleum Resources today. 

The Bill consolidates into a single state-owned company (SOC), the existing Petroleum Oil and Gas Corporation of South Africa (PetroSA), South African Gas Development Company (iGas) and the Strategic Fuel Fund (SFF).  This is a long overdue consolidation into a single SOC of these three individual companies.  If managed correctly, it can help end duplicating mandates, saves costs and ensure better coordination.

It is critical that competent, qualified and experienced management be appointed to lead this new SOC.  Equally it must be properly capitalised and establish the necessary strategic partnerships with industry if it is to succeed.  It will need to be self-sufficient and not expect bailouts from the state. 

If well run, it can play a critical role in unlocking South Africa’s gas and petroleum industries, from tapping the gas rich Orange River Basin off the Northern Cape coast to reviving our domestic fuel refinery capacity.  These will stimulate local industries and value chains, save and create thousands of badly needed jobs, and help reduce South Africa’s exposure to international oil price volatility.

COSATU expects the new SOC to comply with the spirit and letter of the Labour Relations Act and ensure that staff from the existing companies are integrated.  We cannot accept any worker losing their job when we are already battling an existential 43.8% unemployment rate crisis.

Government and Parliament need to ensure that this SOC does not follow the path of its predecessors but rather plays its role as a facilitator to unlocking the jobs rich gas, petroleum and energy sectors.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za