South Africa is considering the establishment of a new crude oil refinery to help stem the importation of petroleum products.
Minister for Mineral Resources and Energy, Gwede Matashe, who disclosed this, is of the view that the new oil refinery will help to revamp the country’s ailing economy.
“South Africa needs a new crude refinery. The scale of petroluem product export and the existing capacity in our refineries make it necessary,” he stressed.
South Africa has six oil refineries, and it is the 10th largest oil producer in Africa and 41st in the world.
The country spends huge sums of money to import crude oil and refined products.
Delivering a speech at the opening of Africa Oil Week 2020 Virtual Conference, he said: “The energy sector is a catalyst for economic growth, hence, the prioritisation of supply of affordable and reliable energy was crucial to fast-track development.”
Mr Matashe was of the view that since the groups’ meeting in 2019, South Africa has published the Petroluem Resources Development Bill seeking public comment, in order to finalise the Bill.
“An immediate positive result of separating oil and gas from the mining legislation by Total. The company has, again, this year, brought another oil and gas drilling rig for the liquified prospect in Block 11/12B off the Mossel Bay coast.
According to him, the drilling was expected to be from one hundred and eighty to three hundred (180 to 300 days, with an estimated local currency of one and half billion Rand (R1.5 billion) to benefit various local companies.
“We are obviously thrilled with the confidence shown by Total in our Government and our country and hope for even a bigger find of oil this time round,” he said.