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BP, Shell take on PetroSA refinery plan

Jan 18 2011 15:17 I-Net Bridge & Fin24

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Johannesburg - PetroSA is likely to come under pressure to abandon a refinery project in the Eastern Cape if lobbying by BP and Shell succeed.

On Tuesday Business Report and Bloomberg reported that BP and Shell have proposed that South Africa buy a stake in their Sapref refinery, which is SA's largest.

The reports said the proposal would be discussed further next month at a meeting with Energy Minister Dipuo Peters.

“It’s true that it is one of the proposals on the table,” Joe Mahlo, BP’s South African spokesperson, told Bloomberg.

PetroSA's plan to build a refinery bigger than Sapref at the Coega industrial zone outside Port Elizabeth has already been criticised by BP.

On Tuesday PetroSA spokesperson Thabo Mabaso said it had no knowledge of the proposal to the government from BP and Shell.

"All we know is what has been reported in the press," he said.

Mabaso said that the proposal should have no effect on PetroSA's refinery plan.

"Our plans are going forward and we are working on a financing model," he said.

The refinery is scheduled to become operational in 2016. The estimated cost will be between $9bn and $10bn and will produce 360 000 barrels of refined products per day.

Petro SA has a refinery in Mossel Bay that produces around 36 000 barrels per day and Mabaso said the company was continuing with its offshore explorations.

 

shell  |  oil refinery  |  mossel bay  |  bp  |  petrosa
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