Petrofac has signed a memorandum of understanding to acquire an interest in a planned pipeline and tank farm system to import petrol and diesel from the Maputo area of Mozambique and supply inland markets in South Africa.

Petrofac will earn its interest in the venture led by Petroline, a consortium of South African and Mozambican shareholders, through the payment of certain back costs and the provision of an initial tranche of funding required to conclude interim feasibility studies for the project. Following completion of initial pre-conditions, including commercial approval from lenders and project shareholders, it is intended that Petrofac will engineer, procure and construct the facilities and take a leading role in the operation of the project, using its training and developmental capacities to maximise the involvement of local skills and resources.

Amjad Bseisu, chief executive of Petrofac Energy Developments, said: “This project deploys our capabilities in infrastructure investment and in assisting partners in evaluating, optimizing and completing the project. We look forward to completing the necessary feasibility work and commercial arrangements to move this exciting project to the next stage of development.”

The proposed project will involve the construction of approximately 400 km of pipeline with a current design basis for approximately 3.5 billion liters a year linking into an existing refined products system; the refurbishment and construction of tankage and improved loading capabilities in Matola; and new tankage in the Nelspruit area.

Petroline comprises a consortium of South African and Mozambican shareholders. Petroleos de Mocambique SARL, Gigajoule International (Pty) Ltd, Companhia de Desenvolvimento de Petroleo de Mocambique SARL and WOESA Consortium (Pty) Ltd, have established Petroline Holdings (Pty) Ltd, Petroline RSA (Pty) Ltd and Petroline SARL. These entities have been awarded the South African license and the Mozambican concession for the project. Under the MOU, Petrofac will acquire a 25%+1 share interest in the project.

Petrofac is a leading international provider of facilities solutions to the oil and gas production and processing industry, with a diverse customer portfolio including many of the world’s leading integrated, independent and national oil & gas companies.

Through its three divisions, Engineering & Construction, Operations Services and Energy Developments, Petrofac designs and builds oil & gas facilities; operates, maintains or manages facilities and trains personnel; and, where return criteria are met and service revenue synergies identified, co-invests with clients and partners. Petrofac’s range of services allows it to help meet its customers’ needs across the life cycle of oil & gas assets.

With more than 9,500 employees, Petrofac operates out of four strategically located international centres, in Aberdeen, Sharjah, Woking and Mumbai and a further 16 offices worldwide. The predominant focus of Petrofac’s business is on the UK Continental Shelf (UKCS), Africa, the Middle East, the Commonwealth of Independent States (CIS) and the Asia Pacific region.