31 August 2007
Investment in Pipeline to Supply South Africa
Petrofac, the international oil & gas facilities service provider, through its Energy Developments division, has signed a Memorandum of Understanding to acquire an interest in a planned pipeline and tank farm system to import petrol and diesel from the Maputo area of Mozambique and supply inland markets in South Africa.
Petrofac will earn its interest in the venture led by Petroline, a consortium of South African and Mozambican shareholders, through the payment of certain back costs and the provision of an initial tranche of funding required to conclude interim feasibility studies for the project. Following completion of initial pre-conditions, including commercial approval from lenders and project shareholders, it is intended that Petrofac will engineer, procure and construct the facilities and take a leading role in the operation of the project, using its training and developmental capacities to maximise the involvement of local skills and resources.
Amjad Bseisu, chief executive of Petrofac Energy Developments, said: “This project deploys our capabilities in infrastructure investment and in assisting partners in evaluating, optimising and completing the project. We look forward to completing the necessary feasibility work and commercial arrangements to move this exciting project to the next stage of development.”