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Coega is in the best interests of SA - PetroSA

by Selwyn Bergman
on 02 Mar 2010
Oceanography SA
Oceanography SA

Following criticism from BP on the feasibility of building a new crude oil refinery at Coega, PetroSA has reaffirmed its stance that the development, also known as Project Mthombo, is in the best interests of South Africa.


In last week British Petroleum has called for all options to be considered prior the building of the new 400 000 barrel a day refinery at Coega in the Eastern Cape. BP Chief Executive stated that there is enough surplus refinery capacity in the work for at least the next 10 years, and also that "It therefore makes no sense to burden South African taxpayers when better and cheaper options are available than building a new, expensive refinery."

PetroSA president, Sipho Mkhize, responded to the criticism by pointing out that the feasibility and prefeasibility study which were executived over a period of three years had already thoroughly challenged the viability of the project. The study confirmed that Project Mthombo was strategically important, technically feasible and commercially viable.

The refinery is also in line with the governments energy security master plan that was introduced as a result of a near-disaster in fuel supply shortages experienced during December 2005.

Mkhize further pointed out that by not constructing the local refinery, SA would become increasingly dependent on imported oil and thereby leverage the global assets and trading activities of BP.

Sources:
BP Driven by Fear of Competition, PetroSA Charges
Coega oil refinery is vital for fuel security - PetroSA
BP questions need for Coega Refinery


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