PetroSA Selects Engineer to Perform Study for $5.8 Billion Refinery in South Africa

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Researched by Industrial Info Resources (Sugar Land, Texas)--Petroleum Oil and Gas Corporation of South Africa (PetroSA) (Parow, South Africa) has chosen Kellogg Brown & Root (KBR) (Houston, Texas) to perform a feasibility study to construct a 200,000-barrel-per-day refinery in Coega, South Africa, that is expected to commence construction in 2010. The study is expected to be completed by May 2008. After the study is complete, a company will be selected to perform engineering, procurement and construction services for the project, which is expected to start up in late 2014.

The proposed refinery, known as Project Mthombo, will process crude oil from Nigeria or the Middle East. The facility will help the country produce refined products to meet local demand. The refinery is expected to create about 15,000 jobs during construction. In addition, it will generate about 1,000 jobs during operation.

PetroSA was formed in January 2002 and is South Africa's national oil company. The organization has a unitary board appointed by the Minister of Minerals and Energy. The company owns, operates and manages the government's assets in the petroleum industry. In addition, PetroSA operates as an unlisted commercial entity under South African law.

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