State-owned Petroleum Oil and Gas Corporation of South Africa (PetroSA) has issued a request for proposals (RFP) to establish a partnership for the development, refurbishment, modification, upgrade, funding and/or operation of its gas-to-liquids (GTL) refinery, in Mossel Bay.

PetroSA is planning to reinstate to full production its Mossel Bay production assets, which includes the FA Platform and GTL refinery (gas loop and liquids refinery) in the earliest possible time, at least cost, following suspension of production in 2020 owing to feedstock challenges.

The Mossel Bay refinery is able to process both gas and condensate.

PetroSA says a long-term feedstock solution is under development, which is expected to supply feedstock to enable full production capacity as of 2027/28.

This solution is most 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 is in support of a partnership agreement to accelerate production reinstatement and optimise the operation in the short to medium term.

Interested parties are invited to submit conceptual proposals, on an incentivised basis, to partner with PetroSA on the project.

Incentivisation proposals should take into account PetroSA’s desire to link the success of the projects to financial incentives for the interested parties.

This could take the form of sharing in production revenues, performance-based contracting or equity participation. Proposals should preferably include part or full financing of the project.

PetroSA wants to receive a turnkey solution from design to commissioning, including funding and feedstock security; however, other combinations which 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 or partners will have an opportunity to interrogate the data  during the business development process.

Applications must be submitted electronically via email to tenders@petrosa.co.za on or before February 20 at 15:00.

PetroSA will give preference to partners/bidders who are State-owned or State-supported oil and gas entities from oil and gas producing nations with access to feedstock (oil, gas and other) and own financial resources to undertake the project; or entities with proven and formalised relationships with oil and gas producing nations; and or project developers who are in a position to finance the development at risk up to financial investment decision (FID) and will only recover development costs at financial close; and or proposals for a turnkey solution, including development, funding (capital raised) and sustainable feedstock supply.

It is envisaged that, once the evaluation is concluded, PetroSA will enter into negotiations with one or more of the shortlisted bidders to conclude a partnership agreement (or memorandum of agreement).

PetroSA and the successful partner will jointly develop the project business case to final investment decision for the reinstatement of the refinery.

PetroSA has scheduled a scope clarification meeting at 10:00 on February 7, on Microsoft Teams. Bidders wishing to attend must inform the PetroSA representative by 10:00 on February 6, submitting names and contact details of attendees, to arrange the necessary access.