Address: 151 Frans Conradie Drive Cape Town 7500
Tel: +27 (0)21 929 3000
Company descriptionIntroducing PetroSA
The Petroleum Oil and Gas Corporation of South Africa (SOC) Limited (PetroSA) is the national oil company of South Africa and is registered as a commercial entity under South African law. PetroSA is a subsidiary of the Central Energy Fund (CEF), which is wholly owned by the State and reports to the Department of Energy.
The company holds a portfolio of assets that spans the petroleum value chain, with all operations run according to world-class safety and environmental standards. PetroSA was formed in 2002 upon the merger of Soekor E and P (Pty) Limited, Mossgas (Pty) Limited and parts of the Strategic Fuel Fund, another subsidiary of CEF.
The core business activities of PetroSA are:
• The exploration and production of oil and natural gas
• The participation in, and acquisition of, local as well as international upstream petroleum ventures
• The production of synthetic fuels from offshore gas at one of the world’s largest Gas-to-Liquid (GTL) refineries in Mossel Bay, South Africa
• The development of domestic refining and liquid fuels logistical infrastructure
• The marketing and trading of oil and petrochemicals.
PetroSA operates the FA-EM, South Coast gas fields as well as the Oribi and Oryx oil fields. The producing gas fields provide feedstock to the Mossel Bay GTL refinery.
Outside South Africa, the company has exploration acreage in Equatorial Guinea and Namibia.
PetroSA’s GTL refinery produces ultra-clean, low-sulphur, low-aromatic synthetic fuels and high-value products converted from natural methane-rich gas and condensate using a unique GTL Fischer Tröpsch technology.
Key commodities produced include unleaded petrol, kerosene (paraffin), diesel, propane, liquid oxygen and nitrogen, distillates, eco-fuels and alcohols. Its world-class synthetic fuels and petrochemicals are marketed internationally.
Our Vision 2020
Our Vision 2020 strategic objective is to become a fully integrated, commercially competitive national oil company, supplying at least 25% of South Africa’s liquid fuel needs by 2020.
We aim to achieve this by:
• Sustaining the Mossel Bay GTL refinery as a profitable operation and use it as a platform to sustain our company
• Growing our company into a significant industry player, while ensuring security of energy supply for the country
• Transforming the company, the sector and society
• Ensuring that the above are carried out in line with the highest safety, health, quality and environmental standards
Products and servicesPetroSA produces high-quality, environmentally-friendly, petrochemical products for the local and international market.
PRODUCTS AND SALES
Our Trade, Supply and Logistics (TS&L) division is responsible for marketing and selling our products and services to customers in South Africa and abroad. TS&L is committed to delivering value to our customers while offering quality products and services to maximise shareholder value in an ethical and environmentally responsible manner.
At home, we sell most of our fuel and fuel-related products to South Africa’s major oil companies. Abroad, our products compete on equal terms with those manufactured by the world’s largest petrochemical multinationals. Among other international markets, we are active in the US, Far East and Middle East as well as Europe, where we have a fully operational office. We are also reinforcing our sales and marketing presence in the emerging markets of Asia and Africa.
PetroSA produces several chemicals from its state-of-art gas-to-liquids (GTL) plant in Mossel Bay. These synthetic chemicals fall into two main groups: alcohols and low-aromatic distillates. These unique chemicals are manufactured to world-class standards. Their quality is assured through our Quality Management System, which conforms to ISO 9002:2008. This means we are able to place these products in the local market and globally in markets across Europe, the US, Middle East and Far East.
Our synthetic alcohol range includes:
• Mosstanol L – A C2/C3 alcohol blend
• Mosstanol 120 – A C3/C4 alcohol blend
• Mosstanol P – A C4/C5 alcohol blend
These high quality, dehydrated alcohols compete on equal terms with those produced by the world’s leading petrochemical companies. Among other in-demand characteristics, their very low water content and absence of aldehydes, ketones and other potentially hazardous elements mean they are very sought after.
Their diverse applications include: screen washes, de-icing fluids, paint thinners, printing inks, board markers, disinfectant applications, cleaning fluids, packaging, electronic equipment cleaners, fuel blending, anti-static fabric treatments and mining applications.
This synthetically produced hydrocarbon range includes:
• Mosspar M
• Mosspar H
Primarily iso-paraffinic, this distillates range is produced using our unique conversion of olefins to distillates (COD) technology. Among other in-demand characteristics, these synthetic hydrocarbon products are virtually free of sulphur and other potentially hazardous elements. The Mosspar range is virtually aromatic free. With very low toxicity, high flashpoints and low odour, they are both environmentally and user friendly.
Their diverse applications include: indoor heating fuels, inks and surface coatings, wax polishes, spray lubricants, metal processing, niche industrial fuels and mining solvent applications. Their superior exhaust emission quality creates high demand In niche fuel markets.
In addition, our low-aromatic distillates are used very successfully in the production of drilling fluids for the deepwater drilling market. They dramatically reduce drilling times with their superior properties, especially at very low temperatures.
To date, PetroSA has produced more than 45 million barrels of crude oil from our Oribi and Oryx oilfields, located in Block 9 off South Africa’s southern coast. Given the depleting reserves in both fields, this notable achievement is another testament to the dedicated professionalism of our engineering and production teams.
On average, Oribi and Oryx currently produce approximately 1,800 barrels of crude daily. Located around 120km south-west of Mossel Bay, Orca, our floating production, storage and offloading (FPSO) facility, has been active in the Oribi field since 1996. The only breaks in its service came in 2007 and 2008, when it underwent recertification works in Cape Town.
In the 2010/11 financial year, the revenue we earned from selling Oribi crude, primarily to international trading companies, accounted for 9% of PetroSA’s total sales.
With a sulphur level of 1.14%, Oribi crude is classified as a sweet crude. Among other advantages, this reduces sulphur dioxide emissions at the refinery. What’s more, the octane number of Oribi crude’s naphtha fraction is relatively high, which reduces the octane upgrading requirement. Its high diesel fraction improves the quality of its final diesel products. In addition, Oribi crude has low contaminant levels, making it easier to produce lighter, value-added products.
Plans to further develop the Oribi field are in hand. Meanwhile, although we only import Condensate for our GTL refinery in Mossel Bay, PetroSA remains involved in third-party crude trading as well as crude storage.
In 2006, we established our Commercial Business unit in direct response to the Government’s mandate to create opportunities for previously disadvantaged people in the petroleum industry. Initially, the unit focused on BEE wholesalers and later expanded its focus to include liquid petroleum gas (LPG). Today, Commercial Business wholesales and markets petroleum products to a mixed customer portfolio that includes wholesalers, state-owned enterprises (SOEs) and gas customers. The department employs around 10 staff, most of them based in Cape Town, and accounts for 10% of PetroSA’s revenues.
Establishing our Commercial Business unit reflects our strong commitment to the principles of Broad Based Black Economic Empowerment (BBBEE). Our mandate is to provide the country with security of supply – and also drive transformation within the oil industry. We continuously find ways of supporting BEE in our business approach, especially when it comes to engaging and nurturing oil industry suppliers within previously disadvantaged communities.
With the focus on developing productive and sustainable partnerships, especially in the B2B sector, we work closely with our customers to deliver quality, cost-effective products and services that will help them to achieve their long-term strategic objectives. In line with the principles of key account management, the Commercial Business unit has full-time sales managers whose main responsibility is to manage customer relationships. This dedicated service ensures that PetroSA stays as close as possible to the day-to-day operational and strategic needs of our customers.
We also play an expert role in keeping our customers fully up-to-date with important legislative and petroleum industry developments and issues. We endeavour to provide our customers with high quality products that meet the standards and specifications set out by the Department of Energy of South Africa. We source our products from a combination of supply points including our own state-of-the art GTL refinery in Mossel Bay and our hospitality supply agreements with other oil companies (OOCs) within South Africa.
PetroSA recently acquired key depots in Tzaneen and Bloemfontein as part of our efforts to further reinforce our supply and logistics infrastructure. These assets will help to place us among the strongest players in the Tzaneen and Bloemfontein markets. We also have a call centre in Cape Town, which is responsible for taking orders and answering customer queries.