PetroSA and Sinopec will join forces to build the multi-billion dollar Coega refinery that could process several hundred thousand barrels of oil per day (bpd)
PetroSA group chief executive, Nosizwe Nokwe, was quoted as saying by MarketWatch that such a deal could enable the company to complete the project, which has been hit by funding issues since the plans for the refinery were first announced in 2008.
The refinery, called Project Mthombo, was originally expected to process 400,000 bpd and cost between US$9 billion and $10 billion to build in the Coega Industrial Development Zone in South Africa's Eastern Cape.
A study by Sinopec Engineering Incorporation will look at these figures and the final capacity and cost will be determined over the next 18 months. Many experts expect the refinery to be smaller than detailed in the original plans.
Commissioning of the refinery is scheduled between 2018 and 2020 according to PetroSA, South Africa's national oil company.
