About CEF

CEF (Pty) Ltd. is involved in the search for appropriate energy solutions to meet the future energy needs of South Africa, the Southern African Development Community and the sub-Saharan African region, including oil, gas, electrical power, solar energy, low-smoke fuels, biomass, wind and renewable energy sources. CEF also manages the operation and development of the oil and gas assets and operations of the South African government.

The CEF

CEF is a private company, incorporated in terms of the Companies Act, and is governed by the CEF Act.

In terms of the CEF Act, the purpose of CEF is to give effect to the objectives of the Central Energy Fund, which are to:

Apart from CEF, the CEF Act also establishes the Central Energy Fund and the Equalisation Fund and determines that CEF will take up the shares in SFF, which is responsible for managing South Africa’s strategic crude oil stocks on behalf of the government.

Shareholder and control

The one share issued is held by the State and is not transferable. The company is controlled by the Minister of Minerals and Energy. The Minister appoints the board of directors, who act as the accounting authority in terms of the PFMA.

The CEF Group

The CEF group operates in the energy sector and controls entities with commercial, strategic, regulatory and developmental roles. The CEF group consists of seven operating subsidiaries:

• PetroSA;
• iGas;
• Petroleum Agency SA;
• OPCSA;
• South African National Energy Research Institute (Saneri);
• The National Energy Efficiency Agency (NEEA); and
• The Strategic Fuel Fund Association (SFF).

CEF includes the Energy Development Corporation (EDC), a newly created division.

The CEF group of companies focuses on gas and oil exploration, oil trading, petroleum products, promoting offshore and onshore exploration, tank terminal management, pollution prevention and control, gas infrastructure development, renewable energy and low-smoke fuels.

CEF has a 30 percent share in the Süd-Chemie Zeolites. The company manufactures catalysts in Richards Bay for PetroSA. The company is managed by Süd-Chemie AG, which holds the rest of the shares.

CEF has a 49 percent interest in Baniettor Mining. The balance is held by BHP Billiton. Baniettor Mining owns the mineral rights to torbanite, which could be used to manufacture low-smoke fuels.

CEF owns 100 percent of Cotec Patrade, Cotec Development and Enerkom. SFF owns 100 percent of Klippoortje Koolmyne, Mahne's Areas and African Exploration and Mining, including the subsidiary companies owning mineral rights.

CEF and DME

CEF manages some of the cash resources of the Mine Health and Safety Council, an entity within the Department of Minerals and Energy (DME). CEF is not involved in the management of this entity.

CEF also calculates the monthly petrol and diesel price for the DME. See the dedicated fuel prices page on the DME website.

The Central Energy Fund

Monies in the Central Energy Fund were collected from motorists for energy development purposes. This continued until 1988. The fund plays a funding role and is managed by the CEF board for that purpose.

Equalisation Fund

During 1979, South Africa found itself in a situation where it could no longer obtain crude oil without paying a premium. The establishment of the Equalisation Fund became necessary to finance this premium by means of the collection of levies and the payment of subsidies. The Minister imposed a levy based on retail sales of petroleum products from January 1979.

Other activities of the fund have been to eliminate unnecessary fluctuations in the retail price of liquid fuel and to afford tariff protection to the synthetic fuel industry.

The assets and liabilities of the Equalisation Fund are managed by CEF, but are not controlled or owned by CEF.

Norad petroleum project

The Department of Minerals and Energy and the Norwegian Agency for Development Co-operation (Norad) have agreed on a business plan proposed by the DME for the Norad petroleum project, which Norad has agreed to fund for about R22-million.

The objectives of the Norad project are to:

• Strengthen the capacity in the DME and associated regulatory institutions (Gas Regulator, Petroleum Pipeline Regulator, Petroleum Regulator, Gas and Petroleum Private Sectors and the SADC relevant structures/secretariats);
• Improve the quality of policy and legislation for South Africa and the SADC;
• Optimise the regulatory dispensation for the oil exploration and production sector to provide an internationally competitive industry;
• Develop strategies to empower historically disadvantaged South Africans and address gender issues in the upstream oil and gas and downstream liquid fuel and gas sectors; and
• Develop policies to encourage the use of natural gas;

CEF is assisting the DME in managing and implementing the Norad project, including financial services, audit services, procurement, appointment of project manager, legal services and contract services for contract staff.

CEF Chairperson's Fund

This fund makes large contributions to three Western Cape universities for petroleum geology training. The state, through CEF and UTT, provide two-thirds of the funding for this programme.

UTT

As part of its empowerment initiatives, the DME established UTT in 1995. It is funded by exploration and production licencees who are required to contribute $100 000 to the trust. The UTT is managed by Petroleum Agency SA and it awards bursaries for training in oil and gas exploration and production skills.