By DEVON MAYLIE
JOHANNESBURG -- South Africa's national oil company PetroSA
said Monday it will partner with China Petroleum and Chemical
Corp. (Sinopec) to build a new refinery that was originally
planned to produce several thousand barrels of oil a day and
cost several billion dollars to build.
The two companies, which signed a memorandum of
understanding in September, settled the agreement to work
together Monday and said they will now carry out a study to
finalize the details of the plant.
PetroSA first announced plans to build the refinery, called Project Mthombo, in the Coega
Industrial Development Zone in the southern town of Port
Elisabeth in 2008.
Development stalled in part because of funding issues. At
the time, the company said it expected the refinery to produce 400,000 bpd
of oil and cost between $9 billion and $10 billion to
A spokesman for PetroSA said final capacity and cost will be
determined by a study that is soon to be undertaken.
The study, which will be carried out by Sinopec Engineering
Incorporation, will take up to 18 months to complete.
PetroSA said commissioning of the Coega refinery is scheduled between 2018
South Africa is an importer of crude oil, mostly from Iran
and Saudi Arabia. Many refineries said they have cut Iranian
crude oil imports amid international pressure.
Dow Jones Newswires