Updated: Wed, 27 Mar 2013 07:56:38 GMT | By Sapa

PetroSA And Sinopec Petroleum Sign Agreement

South Africa's PetroSA and China's state-owned Sinopec petroleum and petrochemicals conglomerate have signed a two-year agreement, they said on Tuesday.


Petrol

Gallo Images

The pact represented a move closer towards Project Mthombo, a potential new crude oil refinery in Port Elizabeth.

"The Framework Agreement enables the two companies to move forward this global-scale crude oil refinery project at Port Elizabeth's Coega Industrial Development Zone (IDC)," the parties said in a joint statement.

The agreement was signed in Pretoria by PetroSA chairman Dr Benny Mokaba and Sinopec chairman Fu Chengyu.

Both parties agreed to integrate the IDC into the next phase of the development.

In May 2012 PetroSA and Sinopec both national oil companies concluded a Joint Study Agreement through which the companies committed to working together to develop the business case for Project Mthombo.

The framework agreement, which is effective immediately, also creates opportunities for co-operation in the areas of oil and gas exploration, and development and production of projects in South Africa and the surrounding countries.

Other areas of co-operation include the investigation of downstream opportunities in the southern African region as well as the development and acquisition of storage and logistical infrastructure.

"The FA was an important building block in making Project Mthombo a reality, and gives PetroSA the opportunity to extend a mutually beneficial relationship with a major national oil company.

"This strategic relationship can and will be leveraged to benefit PetroSA's sustainability and growth programmes," said Mokaba.

Fu said: "South Africa is politically stable and economically developed. Sinopec pays close attention to its business growth in South Africa and wishes to contribute to local economic and social development."

He said Sinopec would push forward the Mthombo project as long as it was economically and technically feasible.

The two companies will also jointly explore other co-operation opportunities in the hydrocarbon industry.

According to PetroSA, once built, Project Mthombo will be the biggest crude refinery in Africa and it will provide national security of supply for South Africa's future fuel requirements.

By 2020 South Africa will have to import about 180,000 barrels per day of gasoline and diesel if there is no significant investment in local refining capacity, PetroSA cautioned.

News & Features

  • Strike  Gallo Images

    Talks to end the protracted wage strike in the platinum sector will continue behind closed doors at an undisclosed location in Johannesburg on Thursday, the Chamber of Mines said.

  • Wool  Gallo Images

    South African wool prices continued to rise at this week's national sale, Cape Wools said on Thursday.

  • Malusi Gigaba  Gallo Images

    It is in South Africa's own interest to support localisation and small businesses, Public Enterprises Minister Malusi Gigaba said on Thursday.

  • Insurance  Getty Images

    A report by the Bureau of Market Research was recently published with alarming statistics regarding the portion of South Africans who are under-insured...

  • Helen Zille  Gallo Images

    A website showing the Western Cape's capital infrastructure investment and delivery in municipalities was launched by premier Helen Zille on Wednesday.

  • Mmusi Maimane  Gallo Images

    Small, innovative businesses will pay R1 for rent under the DA in Gauteng, premier candidate Mmusi Maimane said on Wednesday.

  • Kitchen  Gallo Images

    Did you know that 32% of people don’t sell their homes because of clutter?

  • Graph  Gallo Images

    The consumer price index (CPI) rose by 0.1 percent to six percent in March, Statistics SA said on Wednesday.

  • Zwelinzima Vavi  Gallo Images

    Cosatu general secretary Zwelinzima Vavi has indicated that he does not owe Numsa for its support to have him reinstated at the trade union federation, The Star newspaper reported on Wednesday.

You and Your Business

  • Online  Anatoliy Babiy\Getty Images

    Many small business owners perform the role of maintaining their enterprise’s online presence, which generally includes the website or blog, and social media channels like Facebook, Twitter and Pinterest.

  • Customer Service   Getty Images

    Perhaps I’m just getting grouchier but on the whole it seems as though the level of customer service in South Africa is going from dismal to downright appalling...

  • Thinking  Tomas Rodriguez Corbis

    No one person can do everything, and understanding how to pick your tasks is a key step towards making the best use of your time. Make these choices second nature before starting your tasks to make 2014 one of the most productive yet.

  • Getty Images   Getty Images

    Every year a plethora of new business management books hit the shelves, all claiming to contain the secrets to entrepreneurship success.

Bizarre Business

  • Man Throws Away Winning Lottery Tickets  Associated Press

    A US citizen residing in Pennsylvania accidentally threw out lottery tickets worth $1.25 million between them after he read the numbers incorrectly, the New York Daily News reported.

  • Man Fakes Deaths For R4.2 Million  Wikimedia Commons

    A former Australian funeral director has this week been accused of faking deaths for large insurance pay-outs totalling R4.2 million.

  • Faberge Egg  NIKOLA SOLIC.Newscom.RTR

    A scrap metal dealer in the States was delighted to discover that the ornate egg he’d purchased for a steal at an antique market was actually worth a small fortune.

  • Spanish Village Going For Free  Santi Palacios.Demotix.Corbi

    A 15th century hamlet comprised of 12 crumbling stone houses, is on the market at a price literally anyone could afford... but there's a catch.