LETTER: South Sudan deal just more grease in oil machinations
The ANC’s track record in the sector has many dubious bumps
On the eve of the elections, energy minister Jeff Radebe hastily signed an agreement that the SA government would invest $1bn in the South Sudanese oil sector. He explained that the object was to address SA’s need for crude oil, ensure self-sufficiency and mitigate fluctuating fuel prices. This is a strange decision given Total’s “game-changer” discovery of a significant oil and gas condensate reserve in its Brulpadda drilling off the coast of Mossel Bay. Yet this passed with barely a murmur from the Treasury. It would appear the ANC will never tire of new investments by state-owned enterprises, or their politicians continuing to reinvent themselves as entrepreneurs. The ANC has a long and disastrous legacy in this sector. PetroSA has been plagued by the Oilgate corruption scandal and other “dodgy deals” and power struggles practically from its establishment. It was found to have paid $20m over the target price for its 2013 acquisition of crude oil acreage in Ghana. Its plan to bu...
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