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REFINERY PROJECT
30 firms bid to partner PetroSA in Coega project, winner to be named in October
 
29th August 2008
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National oil and gas company PetroSA says it will appoint an engineering partner for the construction of its planned 400 000-bl/d crude oil refinery at Coega, in the Eastern Cape, at the beginning of October.

The company advertised a multimillion-rand tender in July, stating that it wanted to appoint a strategic engineering partner to manage the various project phases of the refinery, currently called Project Mthombo.

PetroSA external communications manager Thabo Mabaso tells Engineering News that the company has received about 30 bids from international and local companies.

Companies based in the US, the UK, France, Italy, Germany and India have all shown an interest in the project.

Mabaso notes that while both national and international companies will be considered as possible partners, "strong focus will be given to maximum black economic-empowerment participation".

He adds that "proven experience" in projects of the planned refinery's size and nature is the most important criterion PetroSA will look at when selecting a partner.

In July, PetroSA CEO Sipho Mkhize said that the engineering partner would be expected to execute the feasibility, front-end engineering design and project management through to the commissioning of the refinery.

Construction is expected to start in 2010, with the refinery expected to come on stream in 2014.

The construction of the refinery is, to some extent, in response to the Energy Security Master Plan: Liquid Fuels, which was gazetted by the Department of Minerals and Energy earlier this year and recommended that PetroSA procure 30% of all crude oil consumed in South Africa.

The project is expected to create about 8 000 direct and 39 000 indirect jobs, while also lessening South Africa's fuel import bill.

PetroSA has already appointed KBC Advanced Technologies as the project's technical/commercial adviser, and has also appointed a financial adviser, whose identity has yet to be disclosed.

Edited by: Mariaan Webb

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SIPHO MKHIZE
Coega refinery partner will be involved from feasibility stage through to commissioning
 
Picture by: Bloomberg
SIPHO MKHIZE Coega refinery partner will be involved from feasibility stage through to commissioning