Following its oversight visit to the Strategic Fuel Fund (SFF) this week, the Portfolio Committee on Mineral and Petroleum Resources has raised concern about the “insufficient” strategic fuel reserves available to provide uninterrupted service in cases of emergency.

The committee conducted an oversight visit to the SFF, in Saldanha Bay, on March 25, to ensure the SFF has sufficient petroleum reserves to keep the supply uninterrupted during a crisis.

During the visit to the SFF, the committee enquired about, among other things, the storage tanks refurbishment project, including timelines and service providers, and updates on the progress of building liquefied petroleum gas (LPG) loading facilities.

The committee heard about the SFF’s current capacity and capabilities in handling oil spills, particularly in the context of its partnership with the oil pollution control agencies in Africa.

Lastly, the committee sought to learn about the costs incurred by the SFF in court cases related to the sale of strategic stock.

“We are not satisfied with the amount of strategic fuel reserves that the SFF is keeping in stock. As a committee, we believe it is pointless to refine if we do not have sufficient storage or if the limited storage available is not optimally utilised,” said committee chairperson Mikateko Mahlaule.

SFF and PetroSA acting group CEO Sesakho Magadla highlighted the complexity of increasing crude oil kept in storage as the market is not conducive.

“The market is currently depressed; we are only using two of the six tanks for our reserves. Negotiations are at an advanced stage with an international company that will rent one tank,” she told the committee members.

Among the SFF’s other challenges, Magadla mentioned the issue of split powers, as the entity still straddles two departments with the split of the Department of Mineral Resources and Energy into the Department of Mineral and Petroleum Resources and the Department of Electricity and Energy is not yet concluded.

She highlighted the need for streamlining to avoid confusion and delays in approval processes.