PetroSA has denied claims of adjusting the technical criteria in a tender to restart the gas-to-liquids refinery in Mossel Bay.
This comes after the company announced that it signed a R3.7 billion deal with Russia’s Gazprombank to restart the refinery.
AmaBhungane Centre for Investigative Journalism said that the project had an unusually strict criteria that saw the other 19 out of 20 bidders disqualified leaving Gazprombank’s local subsidiary as the only qualifying bid.
PetroSA chief operating officer Sesakho Magadla says although Gazprombank is currently under Western sanctions, there are energy security exemptions which this project falls within.
“We’ve evaluated the risks and they meet the criteria that was issued by PetroSA. We’ve also consulted with DIRCO [Department of International Relations and Cooperation] to give us advice and South Africa having chosen a nonaligned position.”
“DIRCO had advised us that we can proceed with diplomatic trade. This is primary sanctions which are only compulsory for US citizens, as well as UK citizens,” adds Magadla.
PetroSA media briefing:
