Saudi Arabia is in talks with South Africa over a new crude oil refinery and petrochemical plant as part of a $10 billion investment in the South African economy.
During a visit by the Minister of Energy, Industry and Mineral Resources of Saudi Arabia Khalid Al Falih to South Africa's Minister of Energy Jeff Radebe, it was agreed that Saudi Aramco and the Central Energy Fund will jointly conduct studies before progressing further.
Both ministers signed a declaration of intent to cooperate comprehensively over oil and gas. Saudi Arabia supplies 40% of the crude oil consumed in South Africa.
Additionally, the possibility of Saudi Aramco using the tanks at Saldanha to store crude oil was also discussed. The use of Saldanha for storage and trading by Saudi Aramco would improve security of crude oil supply for South Africa and will offer a strategic location for Aramco in the trading of crude oil.
Both Saudi Aramco and the CEF will discuss the proposal further.
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