https://newsletter.en.creamermedia.com
Africa|Energy|Engen|Gas|Oil And Gas|Oil-and-gas|Petroleum|Pipelines|PROJECT|Projects|Refinery|Services|Shell|Testing|Tubes|Operations
Africa|Energy|Engen|Gas|Oil And Gas|Oil-and-gas|Petroleum|Pipelines|PROJECT|Projects|Refinery|Services|Shell|Testing|Tubes|Operations
africa|energy|engen|gas|oil-and-gas|oilandgas|petroleum|pipelines|project|projects|refinery|services|shell|testing|tubes|operations

Petrol refinery closures affect testing company

BUSINESS EXPANSION Company at its testing station to test out new pipelines

OLEUM PROCESS PIPING Company trucks used to transport OPP's equipment to Afrcan countries

8th July 2022

By: Mandisa Nyathi

journalist

     

Font size: - +

The move from a hybrid petrol-producing country to a petrol-importing country is increasingly becoming a challenge for South Africa, as many companies have been shut down or bought out, says testing and inspection provider Oleum Process & Pipeline (OPP) services sales project engineer Stuart Baigent.

“South Africa is pivoting from a production hybrid petrol-producing country to a petrol-importing country. The Engen refinery, in Durban, has closed and is not producing anything, only importing, which, in turn, affects us greatly, many big refineries are leaving the country, we see BP and Shell also closing their doors, this makes the future projects we had planned also being cancelled he says.

This comes after petroleum refineries BP and Shell owned by Sapref announced in March that they will halt operations indefinitely, as they mull the future of the refinery.

"The decision has been taken to allow for an informed finalisation of the various options available to the shareholders, with a sale option being the most preferred," the companies said in a joint statement released in March.

"Until decisions about the future of the plant have been made – including a possible change of ownership – the Sapref shareholders are unable to commit to further investment in the refinery," the statement said.

Baigent says the decision by Sapref to cease operations in South Africa “has had a dramatic impact” on OPP because the petrol producers were some of its biggest clients.

“BP and Shell are also no longer operating their expansions in Mozambique. The terrorist attacks in northern Mozambique have also resulted in the cancellation of big projects in the oil and gas industry in Southern Africa that has also affected us greatly.”

However, OPP plans to continue working in the south of Mozambique to recover from losing its biggest clients. The company has also been doing work in Zambia, Kenya and Tanzania.

Despite these challenges, the company offers the precommissioning of pipelines, and oil or gas installations, to decrease on-site personnel requirements, the duration of required activities and costs.

OPP provides inspection services using an intelligent pig survey that enables the operators responsible for the integrity of the pipeline to assess the failure risk, owing to metal-loss corrosion including internal geometry and distance.

The company also provides decommissioning services that assists companies in safely discarding their process plants and pipelines.

Locally, OPP is doing a routine furnace inspection in a coastal province. The company will inspect the tubes used to hold the oil that is heated in the furnace.

The company is also helping a large pipeline operator to abandon an old pipeline that was built in the 1960s.

It will also send a team to Mozambique to build a new pipeline and inspect the new pipeline for a large integrated energy and chemicals provider.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

Comments

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/11/2024)
15th November 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.245 0.349s - 197pq - 2rq
Subscribe Now