STRATEGIC FUEL FUND AND GLENCORE REACH AN AGREEMENT ON OIL RESERVES
17 September 2020 - The Strategic Fuel Fund (SFF), a subsidiary of the Central Energy Fund, today reached an in-principle agreement with Glencore to reverse the sale of South Africa’s strategic crude oil that happened in 2015. Glencore, which bought 3 million barrels of oil, agreed that the sale was invalid. As part of this agreement, SFF would refund Glencore for monies paid to SFF
SFF took the matter to the Western High Court to seek a declaratory order to set aside the sale of SA’s Strategic Crude Oil Reserves. The matter is underway.
The SFF argues that its former acting Chief Executive Mr. Sibusiso Gamede unlawfully concluded a series of agreements, which resulted in the disposal of South Africa’s 10 million barrels of Strategic Crude Oil Reserves.
Insofar as the SFF is concerned, the reserves were sold without any proper mechanism being put in place for “rotation” or for SFF to repurchase the Oil Reserves should there be a pressing crisis of energy supply in SA.
The SFF is committed to taking the necessary actions to ensure that the ownership of the Reserves and the development of the energy sector remains in the hands of the country for the benefit of South Africans.
“We are happy that Glencore has agreed to return to South Africa what belongs to the country and our fate now remains in the Judge’s hands,” said the SFF.
In respect of the court, the SFF will give final view at the end of the proceedings.
For more details, please contact:
Mr Jacky Mashapu
Manager Corporate Affairs: CEF Group
Cell: 071 485 6856
Tel: 010 201-4700