Loss-making oil company seeks CEO to lead revamp in South Africa

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South Africa’s PetroSA is taking steps to end a legacy of mismanagement and continuing annual losses as it plans a project with TotalEnergies SE, according to its interim chairman.

The state-owned oil company has reported a string of losses, including a record 20.7 billion rand in 2019, and experienced a high turnover of executives through the same period.

“To us, leadership is critical,” Nkululeko Poya, chairman of PetroSA, who has served in the role since last year, said in an interview in Cape Town. The company expects to appoint a chief executive officer and chief operating officer by the end of November. South African president Cyril Ramaphosa’s government has struggled to turn around its large state-owned companies, despite years of initiatives to do so. Power utility Eskom Holdings SOC Ltd. has failed to meet demand, resulting in power cuts that hobble the nation.Time is limited. PetroSA’s Mossel Bay gas-to-liquids plant ran out of feedstock after the company failed to discover more and it has a plan to source fuel from TotalEnergies SE’s offshore discovery.

The company reported a profit in September because of a new strategy that focuses on cutting expenses, reviewing service providers and a revamped trading strategy, according to the chairman.

 

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