Objectives

The primary objective of this tender is to appoint a qualified service provider to conduct a comprehensive valuation of Avedia Energy’s identifiable assets acquired, liabilities assumed, and to determine the useful lives of these assets at the time of acquisition. The valuation will support SANPC’s financial reporting in accordance with IFRS 3 Business Combinations, ensuring accurate reflection of the assets and liabilities in SANPC’s financial statements.

Scope

The scope includes:

• Valuation of all tangible and intangible assets at the Saldanha Bay terminal as of 2 May 2025.
• Assessment of liabilities associated with the assets.
• Determination of fair values using appropriate valuation methods (e.g., market value, depreciated replacement cost).
• Estimation of decommissioning costs for the LPG storage facility and related structures.
• Assessment of the remaining useful lives of the assets based on physical condition, maintenance history, and future use.
• Preparation of supporting documentation, calculations, and references to market data or benchmarks.

Technical Requirements

The appointed service provider must:

• Determine fair values of assets and liabilities in accordance with IFRS 13.
• Use appropriate valuation approaches such as market value, depreciated replacement cost, or other IFRS-compliant methods.
• Estimate decommissioning and environmental compliance costs accurately.
• Assess and document the remaining useful lives of assets considering physical and operational factors.
• Provide detailed reports with methodologies, assumptions, calculations, and market data references.
• Ensure compliance with IFRS 3 and other relevant accounting standards.

Skills and Experience Requirements

Potential bidders must demonstrate:

• Proven experience in asset valuation, particularly within the oil and gas or energy sector.
• Professional qualifications such as Chartered Accountant (CA), Professional Engineer (PE), or equivalent registered with relevant bodies (e.g., ECSA, SAICA, SAICE, ACCA).
• Experience in valuing similar assets, with references to projects involving assets valued at approximately R80 million or more.
• Capability to assess and estimate decommissioning costs and environmental liabilities.
• Ability to prepare comprehensive valuation reports aligned with IFRS standards.
• Team members with at least 10 years of relevant experience in asset valuation and IFRS compliance.