Petrosa seeks partners to help it back to full production

After three years of suspended production, Petrosa is on the cusp of releasing a request for proposals (RFP) to finance and implement the restoration of its gas loop and liquids refinery and flow assistance oil platform in Mossel Bay to full production levels.

The entity plans to use the two facilities in the Western Cape to process gas and condensate, with a long-term feedstock solution under development to supply feedstock from 2027. Production was suspended in 2020 due to feedstock challenges.

While the entity wants to partner SOES, some analysts believe the private sector should be given the opportunity.

The Central Energy Fund (CEF) subsidiary said project developers able to finance the development at risk and recover their development costs at financial close are preferred. Closing date to respond to the RFP is February 20.

The chair of parliament’s portfolio committee on mineral resources and energy, Sahlulele Luzipo, said the committee was aware of the concerns around the Mossel Bay facility and Petrosa’s turnaround and strategic plan.

“It is hoped that the issue with regards to stock at the refineries will be resolved soon, including the issue of partnership. I think it will be incorrect for a portfolio committee to express a view on any procurement process, including this one, which I believe is under way at Petrosa,” said Luzipo.

He said the committee expected a fair, objective and transparent process that does not disadvantage the entity or the interests of the country.

Another CEF subsidiary, the Strategic Fuels Fund, is finalising plans to acquire 60% of Avedia Energy since the Competition Tribunal approved the acquisition late last year.

DA energy spokesperson Kevin Mileham said plans by the SSF and CEF risked continuing the government’s failed track record in various sectors. “My concern with SSF taking the Saldanha Bay terminal is that they are not a trader in wholesale liquid fuels. They should be the strategic reserve of the economy. By entering this field, they are closing the door to private players,” said Mileham.