PetroSA Toasts Milestone for Coega Refinery

Johannesburg — NATIONAL oil and gas company PetroSA has signed a co-operation agreement with the Coega Development Corporation with regard to the planned R10bn crude oil refinery in Coega, near Port Elizabeth.

The agreement, which the two companies yesterday said was a major milestone in the development of the 400000- barrels-a-day refinery, clarifies the roles and responsibilities of the companies in the Coega industrial d evelopment zone during the construction and operation of the refinery.

"The agreement provides for the CDC (Coega Development Corporation) to recognise PetroSA as the official developer and promoter of the proposed refinery, the establishment of a joint project team and a land allocation agreement for the refinery," the companies said.

The corporation, a government-owned entity, has a mandate to develop and manage the Coega industrial development zone . It must also facilitate investment in the zone .

PetroSA's refinery, due for commissioning either in late 2014 or early 2015, will be a major tenant in the zone .

The companies said they had agreed on the roles and responsibilities regarding future activities.

PetroSA CEO Sipho Mkhize said yesterday that the companies were considering developing secondary industries towards the establishment of a petrochemical hub serving southern Africa.

He said the agreement would give potential investors confidence that the project had the support of major players in the South African economy.

Mkhize last week said that PetroSA was keen to offer as much 62,5% in the refinery to potential equity partners. (AllAFRICA)