State-owned gas-to-liquid fuel company PetroSA projects a loss of R2.2bn in the year to end-March 2017, including R1.1bn in an additional impairment, PetroSA acting CEO Bhekabantu Ngubane said in Parliament on Tuesday. The forecast loss comes on the back of the R14.6bn net operating loss in the 2014-15 financial year. This included an impairment charge of R14.5bn for the offshore Ikhwezi project, which failed to deliver the volume of gas reserves anticipated. Inadequate project management contributed to the loss on the project. Adding to the company’s fiscal challenges is the R8.8bn shortfall in its decommis-sioning liability. PetroSA board members told members of Parliament’s energy committee they were satisfied that the matter had been dealt with “as any responsible organisation would do”. No pre-planned negligence was found, board members told MPs. Every attempt had been made to hold executives to account but it was difficult to find charges that would stick against the former CE...
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