aboutCEF Group
CEF Group Overview
CEF is a Schedule 2 state owned diversified energy company reporting to the Department of Mineral and Petroleum Resources. The Mandate of CEF is to contribute to the security of energy supply of South Africa and the Region through exploration, acquisition, development, marketing and strategic partnership. It is derived from the CEF Act (No 38 of 1977) and the Ministerial directives issued thereafter.
Established in the 1950s, CEF has played a central role in ensuring South Africa’s energy security supply, and making a significant contribution to the South African economy and being a strategic partner to the Department of Mineral Resources and Energy providing insights in support of policy development and regulation.
- Contribute to security of energy supply. Provide affordable, accessible, diverse use of primary energy resources
- Be a strategic partner to the Department of Mineral Resources and Energy: Provide insights in support of policy development and regulation and implementation of key projects.
- Be a financially sustainable company: Commercially strong SOE that can be relied upon to support the implementation of policies and programmes of the Department.
- Reduce the country’s overdependence on multinationals. Operate across the entire energy value chain & minimise market failures.
- Align with government’s broad objectives (NDP): Act as a vehicle for economic growth, poverty alleviation and economic transformation.
- Provide thought leadership in energy policy development and other energy initiatives; and
- Contribute to security of energy supply (in liquid fuels and gas) and support the deployment of new energy technologies in the country.
This will be done through the acquisition, exploitation and manufacture of appropriate energy solutions [from coal, oil, gas and renewable energy resources] to meet the future energy needs of South Africa, the SADC and the sub-Saharan African regions.
The CEF Group operates right across the Energy Sector Value Chain. The subsidiaries are wholly owned by CEF SOC Ltd and it holds minority interests in two small renewable energy ventures (Associates). In addition to this the CEF Group manages the Equalization Fund.
Renewable energy activities of the holding company are managed through the Energy Projects Division (previously the Clean Energy Division). These include the identification of new joint venture investments in renewable and clean energy projects, and the management of existing joint ventures with other parties.
Wholly owned subsidiaries operating under CEF are namely:
- AEMFC – which mines coal in Mpumalanga for supply to Eskom.
- iGAS – which is a shareholder in the Mozambique-to-South Africa gas pipeline and is involved in the development of other gas delivery projects.
- PASA – which is the national petroleum and gas promotion and licensing agency
- PetroSA – which is the largest subsidiary in the Group and operates a gas-to-liquids refinery that uses indigenous gas as feedstock. It is also a partner in a producing oil field in Ghana.
- SFF – which manages strategic crude oil infrastructure, strategic crude oil stocks, and provides oil pollution control services in Saldanha Bay.
The Group business operations, investments and strategic partnerships spanned two continents and four countries. These activities are in oil and gas, technology and gas infrastructure, mining and renewables, and represent a diversified portfolio in line with our Group strategy. These countries are:
- South African Operations – Mining, offshore production, refining, renewables investment
- Mozambique Operations – Mozambique to Secunda Pipeline (MSP); 865 km long gas transmission pipeline from Temane gas field near Vilanculos in Mozambique to Secunda in South Africa
- Ghanaian Operations – 3% stake in the Jubilee oilfield off the coast of Ghana. Oilfield currently produces 100k to 120k bpd
The following legislative frameworks drive the organisational strategic thrust of the CEF Group and define the parameters for its operational effectiveness.
- CEF Act, No 38 of 1977
- Petroleum Products Act, 1977
- Electricity Act, 1987
- Public Finance Management Act, 1999
- Gas Act, 2001
- Petroleum Pipelines Act, 2003
- The National Energy Regulator Act of 2004
- National Energy Act, 2008
- Regulations Companies Act, 2008
- National Environmental Management Act of 2009
- Mineral and Petroleum Resources Development Amendment Bill, 2013
- International Financial Reporting standards (IFRS)Energy Security Master Plan, 2007
- Integrated Resource Plan for Energy, 2010
- Key Acts Energy Sector Planning with Petrol and Diesel, 2012
- Draft Strategic Stocks Petroleum Policy and
- Draft Strategic Stocks Implementation Plan
- Integrated Energy Plan
- Liquid Fuels Master Plan
- Gas Utilisation Master Plan
