ANGOLA      ALGERIA      CAMEROON      CHAD.      CONGO      EGYPT..      EQUATORIAL GUINEA      GABON      LIBYA.     NIGERIA      SOUTH AFRICA      SUDAN      TUNISIA      OTHERS 

PetroSA to Build Oil Refinery in Eastern Cape

10-25-2007 

State owned oil firm PetroSA said today it would build a R39bn oil refinery in Eastern Cape, with production expected to begin in 2014.

Initial output at the refinery at Coega is expected to be 200,000 barrels per day, an official with the company said. Construction will begin in 2010 and some 20,000 jobs will be generated as a result of the development.

PetroSA, which manages SA’s strategic crude inventory, explores for oil and natural gas globally, focusing on Africa. It has interests in Nigeria and recently acquired exploration fields in Mozambique, Namibia, Sudan and Egypt.

"Project Mthombo will be one of the biggest post-2010 investments in South Africa," PetroSA CEO Sipho Mkhize said.

"This project will also significantly improve South Africa’s fuels import bill," Mkhize said.

The project would further redefine SA’s energy landscape.

The demand for automotive fuels in Southern Africa already exceeded the local production capacity and SA was becoming increasingly dependent on importing refined automotive products.

"Based on the current rate of demand growth, the demand for fuel in South Africa will justify a new crude oil refinery within the next five to seven years.

"This is why PetroSA is investigating the possibility of building a 200,000 plus barrels per day multi-billion rand crude oil refinery," he said.

The minerals and energy department’s energy security master plan recommended that PetroSA procure at least 30% of all crude oil consumed in SA. "The initiative by PetroSA to build a new crude refinery is in direct response to this mandate," said Mkhize.