The Saldanha tank farm in South Africa has received an influx of contracts from overseas oil traders, setting operations at full capacity for the first time since the early nineties.
COO of the Strategic Fuel Fund, managers of the site on behalf of the government, Sizwe Madondo says medium-term contracts have been concluded with a number of international oil dealers mainly based in Switzerland and London, UK, to use the facilities at Saldanha.
The tank farm at Saldanha holds six concrete containers, storing 7.5 million barrels of oil each. It is the largest installation of its kind in Africa with a total capacity of 45 million barrels of oil. South Africa stores 10.8 million barrels of the country's strategic fuel stocks at Saldanha.
Overseas contractors are using approximately 35 million barrels of the storage capacity, while the remainder is used by South Africa. Caltex/Chevron bought some of the capacity four years ago.
The Strategic Fuel Fund generated net profits of R83 million (8.3 million) in the previous financial year. The six tanks at the Saldanha Tank Farm were built at a cost of R108 million.