The Petroleum Oil and Gas Corporation of South Africa (PetroSA) has issued a request for proposals (RFP) to establish a partnership for the development, renovation, modification, upgrade, financing and/or operation of its gas-to-liquids (GTL), at the Mossel Bay refinery.
PetroSA plans to restore its Mossel Bay production assets, which include the FA platform and the GTL (Gas and Liquids Loop Refinery) to full production as soon as possible, at the lowest cost, following the suspension of production in 2020 due to raw material challenges.
The Mossel Bay refinery is capable of processing both gas and condensate.
PetroSA says a long-term feedstock solution is being developed, which is expected to supply feedstock to enable full production capacity from 2027/28.
This fix is more likely to affect the FA platform and gas loop section. The condensate section could be decoupled from this long-term solution, ensuring uninterrupted production.
PetroSA says its shareholder supports a collaboration agreement to accelerate the restoration of production and optimize the operation in the short and medium term.
Interested persons are invited to submit conceptual proposals, with incentives, to collaborate with PetroSA on the project.
Incentive proposals must take into account PetroSA’s willingness to link project success to financial incentives for stakeholders.
This could take the form of production revenue sharing, performance-based hiring or equity participation. Proposals should preferably include full or partial financing of the project.
PetroSA wants to receive a turnkey solution from design to commissioning, including financing and raw material security; however, other combinations that are fit for purpose are encouraged and will also be considered by PetroSA.
PetroSA says that while it has a significant level of GTL refinery engineering expertise, subsurface expertise in geology, geophysics and reservoir engineering disciplines, the preferred partner(s) will have the opportunity to interrogate the data during the business development process.
Tenders must be submitted electronically by email to tenders@petrosa.co.za by 20 February at 3pm.
PetroSA will give preference to partners/bidders that are state-owned or state-supported oil and gas entities from oil and gas producing countries with access to raw materials (oil, gas and others) and own financial resources to carry out the project ; or entities with proven and formalized relationships with oil and gas producing countries; and/or project developers who are in a position to fund development at risk up to the Financial Investment Decision (FID) and will only recover development costs at financial close; and/or proposals for a turnkey solution, including development, financing (raised capital) and supply of sustainable raw materials.
It is expected that, once the evaluation is concluded, PetroSA will enter into negotiations with one or more of the shortlisted bidders to enter into a collaboration agreement (or memorandum of understanding).
PetroSA and the successful partner will jointly develop the project business case until the final investment decision for the restoration of the refinery.
PetroSA has scheduled a scope clarification meeting at 10:00 on February 7, on Microsoft Teams. Bidders wishing to attend must notify the PetroSA representative before 10:00 a.m. on February 6, sending the names and contact details of attendees, to arrange the necessary access.
