Energy minister, Jeff Radebe, and the Saudi minister of Energy, Industry and Mineral Resources, announced on Friday that the investment of the Arab kingdom of 10 billion dollars in South Africa would become a new oil refinery and a petrochemical plant.
The two ministers held bilateral talks in Pretoria on Friday morning to discuss the investment details of $ 10 billion announced in July 2018. They also discussed the possibility that Saudi Aramco would use Saldanha deposits to store crude oil.
The supply of 40% of crude oil from South Africa, according to the Department of Energy, the meaning of Saudi Arabia as a commercial partner can not be overstated.
According to Trading Economics, Saudi Arabia accounts for 4.8% of total imports from South Africa, which also represent one of the largest commercial deficits in SA.
A statement from the Energy Department said that the investment will see Saudi Aramco and the Central Power Fund of South Africa working together to establish terms of investment and long-term energy collaboration .
"Both ministers discussed the modalities for the Saudi Arabia investment proposal in a new crude oil refinery and petrochemical plant in South Africa," the statement said.
"Saudi Aramco and the CEF will conduct joint studies that will inform the next milestones. In this regard, the ministers signed and signed a declaration of the intention to cooperate in a comprehensive way in the field of oil and gas" said the statement.
The statement said that the use of Saldanha for the storage and trading of crude oil from Saudi Aramco would improve the security of crude oil supply to South Africa and offer a strategic location for Aramco in the commerce of crude oil.
"Ministers also discussed the cooperation in renewable energies. Acwa Power, whose chief executive officer was in the delegation, is an important investor of the program of independent producers of renewable energy in South Africa," said the notice