Synthetic fuels group Sasol and PetroSA, the state-owned oil and gas exploration company, are to sign a heads of agreement document in Pretoria on Thursday to collaborate and possibly engage in joint projects relating to natural gas and chemical operations.
The agreement embodies a strong spirit of cooperation and may, in time, lead to business ventures between the two companies, the Department of Minerals and Energy said in a statement on Wednesday.
“It is in the interest of both parties to portray a positive image of South Africa in the international energy and chemical markets and to develop and expand opportunities for historically disadvantaged people and black economic empowerment businesses. By signing the document, Sasol and PetroSA will agree to implement these intentions,” Minerals and Energy Minister Phumzile Mlambo-Ngcuka said.
Sasol chief executive Pieter Cox said: “We at Sasol welcome the spirit of the agreement and will form a collaboration committee with PetroSA to evaluate potential joint projects, including natural gas and chemical opportunities, in respect of the Mossel Bay Operation. We value the obligation of good faith by PetroSA and the continued support of the Ministry of Minerals and Energy.”
PetroSA chief executive Sipho Mkhize said: “PetroSA needs additional gas for our Mossel Bay refinery and the agreement may result in collaboration with Sasol to find these resources through drilling operations at our Ibhubesi exploration field, or Sasol’s blocks 3A and 4A on the West Coast.
“It is also possible that Sasol may find additional gas reserves in Mozambique in excess of its own needs. Together we will look at any other viable alternative to add value.”
Sasol’s licensed technology gives PetroSA certain rights to design, construct and operate a synthetic fuels plant at Mossel Bay based on the Sasol Synthol process for production of fuels. Various concessions have been made by Sasol that could facilitate opportunities aimed at enhancing performance of the Mossel Bay assets.
The parties said that a cooperation agreement setting out the general principles, details and procedures for the implementation and management of the joint evaluation of opportunities will be negotiated as soon as possible after signing the heads of agreement. — I-Net Bridge