5 September 2017

South Africa: PetroSA - Russian Geological Seo Rosgeo Throws National Oil Company a R5-Billion Lifeline

Photo: GCIS
President Jacob Zuma Russian President Vladimir Putin (file photo).
analysis

Is this a sweet deal for the cash-strapped PetroSA or is it one that's finally put a smile on the faces of both President Jacob Zuma and his Russian counterpart, Vladimir Putin? By JESSICA BEZUIDENHOUT.

Some five months after Russia's nuclear hopes in South Africa came crashing down thanks to a High Court order that forced the SA government back to the drawing board, bilateral co-operation between the two countries appears to be working just fine - for now.

This is thanks to the deal signed between PetroSA and Rosgeo for a strategic partnership that will see the Russian company invest about $400-million (R5-billion) to develop oil and gas blocks off the Cape coast in an area commonly referred to as Block 9.

Signed during the BRICS Summit in China on Monday, the partnership will see Rosgeo explore for oil and gas in a vast stretch of ocean off the Cape south coast.

"The project envisages extraction of up to 4-million cubic metres of gas daily and would eventually be delivered to the Mossgas refinery," PetroSA announced in a statement on Monday afternoon.

Feedstock for the refinery has run low for several years, sparking fears that it may need to...

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