Government-owned oil and gas company PetroSA on Tuesday said it was looking for a strategic partner in the proposed $11 billion Coega oil refinery.

The contract, which PetroSA said was worth "several hundred millions of rands," was for the execution of the feasibility study, front-end engineering design, project management, construction and commissioning of the refinery, also known as Project Mthombo.

The refinery will have a capacity of 400,000 barrels a day and is expected to come onstream in 2014.

This comes as the government envisages a larger role for PetroSA in its initiatives to ensure security of liquid fuel supply.

The government's energy security "master plan" recommended 30% of all crude consumed in SA be procured through PetroSA.

"Each phase of the project will be expected to meet targeted milestones and commercially viable requirements to ensure sustainability and alignment with PetroSA's objectives and its stakeholders in addressing SA 's strategic fuels supply concerns," PetroSA's vice-president for new ventures, Joern Falbe, said Tuesday.

CEO Sipho Mkhize said the group would ensure the participation of black economic empowerment (BEE) companies in the project. "PetroSA will ensure that only world-class players, who have an interest in capacity building, BEE and supplier development, and with proven global best practice, will be eligible for selection in this strategic project," he said.

According to PetroSA, the project would create 8,000 direct jobs and 39,000 indirect jobs.


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