CAPE TOWN – The largest oil producer in the world, Saudi Aramco is planning to set up an oil refinery and petrochemical complex in South Africa this year. This will be it’s third venture, after similar commitments in Pakistan and China.
Earlier in January, Department of Energy(DOE) released a statement which stated that Saudi Aramco and Central Energy Fund were merging to establish a new oil refinery in S.A.
When questioned about the new project, the DOE referred us to the January’s statement.
Aramco aims to increase its production in petroleum and chemical products around the globe.
According to the China Daily, Saudi Aramco has already completed its plans of building a 300,000 barrel per day oil refining and petrochemical complex in North East China, in cooperation with Norinco Group.
The Saudi behemoth has also set up a $10 billion (R141.97 bn) oil refinery and petrochemical complex in Pakistan.
During president Cyril Ramaphosa visit to Saudi Arabia in July 2018, the Saudi group promised to invest $10 billion in South Africa. In January this year, Minister of Energy Jeff Radebe further met with Saudi Arabia’s Minister of Energy, Industry and Mineral Resources to follow up the agreement made during Ramaphosa’s visit.
Last month, Ramaphosa then met with Yasir Othman AI-Raumayyan – managing director of the Saudi Arabian Public Investment Fund, to discuss for new investment in S.A.
Saudi Arabia asked South Africa to allow it to invest in the energy sector.
About 40% of crude oil consumed in South Africa comes from Saudi Arabia.