PetroSA appoints Russian Gazprombank to refurbish Mossel Bay plant
State-owned Petroleum Oil and Gas Corporation of South Africa (PetroSA) has confirmed the appointment a Russian refinery company GazpromBank Africa to refurbish its gas-to-liquid refinery in Mossel Bay.
The decision was approved by cabinet despite the state-owned company being under US sanctions over the Ukraine war.
Out of 20 bidders, 19 were disqualified and only GazpromBank Africa was selected as a successful bidder.
Briefing the media in Sandton on Monday, PetroSA CEO Sandisiwe Ncemane said the appointment is to scale up the refinery capacity of the state-owned entity and its plant.
"To scale up the refinery capacity at Mossel Bay requires that we take some bold steps, our GTL refinery was put on maintenace and care at the end of 2020 due to challenges,
"Following this, a decision was made to reinstate the GTL by sourcing a strategic partner. PetroSA welcomes government decision to support PetroSA working with Gazprom Africa to reinstate PetroSA liquid refinery capacity as it enables PetroSA to move forward."
Speaking at a media briefing earlier on Monday, Minister in the Presidency Khumbudzo Ntshavheni defended the appointment.
"Cabinet received an update on progress with the process to reinstate the Mossel Bay GTL refinery as a one of the critical components of PetroSA’s turnaround strategy.
"Cabinet was updated about the process followed by CEF to source partners with requisite technical and financial resources to support PetroSA in bringing the refinery back to full operation.
"The preferred partner would share in the risk and rewards of reinstatement of the refinery," she said.
Ntshavheni said the move will create some 6 000 jobs.
"The refinery reinstatement has a potential to retain at least 2000 direct site jobs, with an additional potential fixed-term employment opportunities for 4000 jobs during the construction phase.
"Cabinet endorsed PetroSA’s recommendation to select GazpromBank Africa as the investment partner for the re-instatement of the plant and production."
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