PetroSA will oppose an application seeking to liquidate the state-owned fuel company over a R605 million ($37.2 million) debt claimed by Johannesburg-based fuel trader Nako Energy. The dispute stems from fuel transactions dating to June 2024 and has escalated into a legal battle over competing payment claims between the companies.

The liquidation application centers on a petrol cargo PetroSA purchased from Nako Energy in June 2024 that the state company reportedly struggled to sell because it contained a problematic chemical additive. Nako claims PetroSA failed to settle the resulting R605 million liability, according to reporting by Amabhungane.

A disputed fuel deal

Nako Energy, however, also owed PetroSA R832 million ($51.1 million) for a diesel cargo it purchased but did not pay for, according to the same reports. On the face of those competing claims, PetroSA’s position would have produced a net receivable of more than R200 million ($12.3 million) from Nako.

The dispute took a different turn after Nako, the smaller fuel trader, allegedly offered PetroSA a revised arrangement that changed the companies’ respective positions. Under the resulting deal, PetroSA was left facing an amount claimed by Nako, despite the earlier diesel transaction having left Nako owing the state-owned company.

PetroSA heads to court

PetroSA confirmed Thursday that it had received the liquidation application and intends to oppose it. In a two-page statement, the company said it has a substantive defense to Nako’s claim and will present its position to the court through the legal process rather than debate the dispute publicly.

“The company has a substantive defence to the claim and will place its position fully before the court in accordance with the legal process,” PetroSA said. The company’s board also sought to ease concerns over reports of an “imminent” liquidation, saying the business remains operational and continues serving employees and business partners.

Board rejects liquidation fears

PetroSA said it would observe the sub judice principle while the dispute is before the courts, limiting what it can say publicly about the merits of the case. The company also acknowledged social media discussions involving historical allegations concerning PetroSA, saying those matters are not new and remain subject to its governance and organizational processes.

The legal dispute places renewed attention on PetroSA’s financial and governance affairs as the company contests a claim that could otherwise threaten its corporate standing. For now, the state-owned fuel producer says its defense will be made in court, while the competing claims over the fuel transactions remain unresolved.