Parliament ‘misled’ on SA’s oil stockpile
New Energy Minister Mmamoloko Kubayi admits the strategic reserves were sold, with about 10.3-million barrels discounted
The government has admitted for the first time that the secret disposal of 10.3-million barrels of SA’s strategic oil reserves by the Strategic Fuel Fund (SFF) in December 2015 had indeed been a sale and not a "rotation of stock", as former energy minister Tina Joemat-Pettersson repeatedly had asserted to justify her approval of the deal. Newly appointed Energy Minister Mmamoloko Kubayi apologised to MPs and Parliament on Tuesday for their having been misled about the nature of the transaction. This was after DA energy spokesman Gordon Mackay expressed concern that the energy portfolio committee had been misled. The crude oil stockpile was sold at the bottom of the crude oil price cycle at a substantial discount to the prevailing spot price. It was sold to three invited buyers at an average price of $28 a barrel at a time when the Brent oil price ranged between $37.22 and $44.44 a barrel.In 2016, Joemat-Pettersson instructed London-based law firm Allen Overy to review all SFF contra...
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