Saudi Arabia has its eye on constructing an oil refinery in South Africa as part of a pledge to invest as much as $10 billion in Africa’s most developed economy, according to Bloomberg. The Saudi Aramco and South Africa’s Central Energy Fund are to conduct joint surveys based on a refinery and petrochemical complex. The negotiations highlight South Africa’s aspiration to add a refinery, which it has under consideration for a decade.
Mainly, Saudi Arabia made its pledge last July as South African president, Cyril Ramaphosa, invested to revive a flagging economy.
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Despite the fact that South Africa has previous agreements hanging, including the construction of a refinery in China in 2011, the project is yet to get off ground.
Saudi Arabia and South Africa have a close relationship as S. Arabia supplied approximately 40% crude.
In addition, Jeff Radebe, South African Energy Minister, has urged for a rise in domestic refining in order to shut down fuel imports.
Yet, the pending introduction of clean-fuel standards has prompted refiners to stall rather than expand.
Radebe and Khalid Al-Falih, Saudi Arabia Energy Minister, signed a declaration of intent to cooperate in oil and gas.
Amongst discussions, a matter was the possibility of Saudi Aramco using the vast oil-storage tanks in Saldanha Bay, a harbor north of Cape Town offering a strategic location for trading.
Concluding, Al-Falih stated that
We believe that South Africa will grow economically.
