Wednesday, 27 June 2007

Strong-arm tactics down at the old (Sasol) tank farm?
We need a new refinery – and soon. Everyone agrees that it should be built. But where, how, by whom and who should pay for it?
Minerals and Energy Minister Sonjica has announced that business (read oil companies) and government were planning to do just this. Sasol has said that they were “considering “assisting the government. But “considering” is not the same as actually “assisting” or “being involved”. This was Sasol’s shot across the bows of the Department of Minerals and Energy and the resulting furious talks behind the scenes saw Sasol doing a little arm twisting. First, the issue of windfall taxes fell off the radar; then the issue of Sasol’s debt to the nation kind of went away as well. (Remember that Sasol it was subsidised by you and me for at least 25 years).
And, surprise, surprise, with all that nasty stuff out of the way, Sasol announced proudly that it was now in full development mode for a new gas-to-liquid and/or coal-to-liquid refinery and was scouting areas such as the coal-rich but ecologically sensitive Waterberg region for possible sites.
Richard Nixon was reputed to have said “when you have them by the balls their hearts and minds will follow”. What did Sasol do to Madame the Minister?

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