"The 14.9-billion loss includes a R14bn impairment, resulting from the failed Project Ikwezi, in which the intention has been to extend the life of Mossgas by drilling new wells. But the wells have yielded only 10% of the gas that was anticipated," it was reported in the Business Times this week.
Documents handed to the Cape High Court last week show that PetroSA will miss all of its key performance targets for the year, bar one, and has been bitterly divided over various contentious projects, among them a plan with political backing to purchase Engen retail fuel stations. Transaction advisers and the Treasury apparently repeatedly advised that the Engen transaction code named project Irene did not make good business sense.
