/ 22 March 2006

MAN to invest in SA oil, gas industry

Plans to build a multibillion-rand South African offshore oil and gas equipment fabrication yard at Saldanha and a service and refurbishment hub at Cape Town harbour were announced on Wednesday by MAN Ferrostaal.

”The investment which we, with our partner Atlantis Marine Projects and our financial partners, wish to make will be entirely committed to the development of world-class oil and gas related portside infrastructure,” said Matthias Mitscherlig, chairperson of MAN Ferrostaal AG.

Mitscherlig, according to a statement, would make a formal announcement at the Oil Africa Conference and Exhibition 2006 later on Wednesday.

He said the capital expenditure would provide for quayside refurbishment and the erection of specialist workshops, fabrication facilities and associated infrastructure.

”The establishment of these world-class facilities will, we believe, open a new chapter in the African landscape, whereby the excellent industrial infrastructure and technological capacity of South Africa can be channeled through, to support the growing West and Southern African offshore oil and gas fleets.”

Mitscherlig said the rising international demand for oil and gas had now focused on Africa as a future major source for this commodity.

He said development of the sub-sea oil and gas fields required skill and technological innovation, with South Africa capable of contributing to the expansion of African offshore fields through the establishment of these facilities in Cape Town and Saldanha Bay.

Mitscherlig said the investment would assist in fulfilling of the Accelerated Shared Growth Initiative of South Africa. – Sapa