Business
South Africa: Oil firms warned to boost black ownership
Mthombo oil refinery, Eastern Cape, South Africa. PHOTO/http://www.sxc.hu
(Reuters) – Black ownership of fuel companies operating in South Africa is far below state-mandated targets agreed in 2000, the energy minister said on Thursday, warning companies could lose their operating licences if they failed to make up ground.
Under the Petroleum and Liquid Fuels Charter of 2000, companies committed to achieve 25 percent black ownership by 2010 to boost the participation of blacks in the Africa’s biggest economy.
However, South Africa Energy Minister Dipuo Peters said an audit had found the average black shareholding was 18.9 percent instead of the mandated 25 percent. Only Total had fully complied with this ownership obligation.
“Overall the findings of the audit are extremely disappointing,” Peters told journalists.
Other firms active in the industry include South Africa’s state-owned PetroSA, Shell, BP, Chevron, petrochemicals group Sasol, and Engen, majority-owned by Malaysian state oil group Petronas.
Peters said there was only 48 percent compliance with the charter, which also set targets on management control, oil procurement, skills development, participation of women, access to joint infrastructure and retail networks, among others.
The minister said she would meet with the companies to set agreed deadlines for them to meet these targets. She could not specify how much time they would be given.
