PetroSA, the state-owned oil and gas firm, has said that it is in negotiations with potential investors to partner with in the planned 400,000-barrel-a-day refinery in Coega, near Port Elizabeth.

The news follows a statement by Peter Noke, national director of the South African Petroleum Retailers’ Association, who called for a partnership between the government and the private sector in order to ensure steady oil supplies.

In an interview with Business Day, Noke said: “The frequent shortage in the supply of fuel to service stations and the non-delivery by oil companies points to only one thing — insufficient stock holding and poor planning.”

“What we need is a constant supply of crude and fuel to ensure a successful economy. Once the industry is stable, the state could withdraw systematically from the partnership, paving the way for local and (black economic empowerment) investment,” he added.

In addition, Noke added that oil companies are also concerned that the PetroSA refinery could make their operations less profitable, as it would displace volumes of fuel currently being sold into the domestic market by refiners.