International oil majors operating in South Africa, which is dependent on oil imports, have signed a proposed Oil Industry Charter for transformation where meaningful control is put in the hands of those disadvantaged by apartheid. "This is a landmark decision which sets achievable goals of how the 25 per cent is going to be translated into reality in a non-token way," Morakile Shuenyane, chief executive officer of unlisted, black-owned, Thebe Petroleum Co (Tepco), said. "In 2001, signs of Tepco becoming a major player in the South African petroleum landscape will start emerging," he said. But not everybody is convinced that the minister's target is realistic as the charter relies simply on the industry to operate within the spirit of the agreement rather than legal compulsion. Many feel that opening it to price competition and loosening state control is the only way to provide relief for South African consumers, hit by high global oil prices and the effects of the country's declining currency.

"The 25 per cent is going to be difficult because the minister is not talking about black participation, but ownership," said Rowan Goeller, an analyst with Deutsche Bank Securities in Johannesburg. According to the Energy Ministry, black companies own just 5.2 per cent of assets in the domestic fuel industry and receive only 3.2 per cent of annual operating profits. "At this stage it is not clear where the money to fund the 25 per cent is going to come from," Mr Goeller said.

The minister's policy statement has been endorsed by international oil firms - including Caltex, Shell, Total, BP and South Africa's Engen, owned by Malaysia's Petronas - and industry group South African Petroleum Industry Association (Sapia). Black-owned and operated companies that have signed the charter are conservatively optimistic and some have pressed for the timeframe to be halved to five years.

(Reuters)