The long-awaited results of an investigation into the R14.4bn impairment in 2014-15 of the assets of state-owned gas-to-fuel company PetroSA are expected by Parliament’s energy committee on Tuesday. The committee requested the investigation more than a year ago to find out what projects had contributed to the impairment, which DA energy spokesman Gordon Mackay on Monday described as the "biggest write-off in South African history" by a state-owned entity. The committee requested a breakdown of the impairment cost, which was due to PetroSA’s failed Project Ikhwezi that involved drilling wells to provide feedstock for the Mossel Bay plant. The project envisaged that three wells would provide gas to the refinery by June 2015 within a budget envelope not exceeding $1.34bn. Only two wells did so and not at the volumes anticipated. Of the 240-billion cubic feet (bcf) of gas expected, only 60 bcf was produced. Securing additional feedstock for the Mossel Bay refinery is critical to ensure ...
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