Petrofac buys stake in Mozambican project

4 September 2007

London, United Kingdom, 4 Sept – Petrofac, a service provide to the oil and gas industry, said Friday in London it had signed a memorandum of understanding to acquire a stake in a projected oil pipeline and storage system to supply the South African market from Mozambique.

The acquisition of the stake in the business led by Petroline, a consortium of South African and Mozambican shareholders, will be carried out through payment of some delayed costs and the delivery of initial funding needed to conclude some feasibility studies.

When financers and shareholders approve the deal, Petrofac will design, acquire materials and build the facilities and take on the leadership of the project.

The project involves the construction of approximately 400 kilometers of pipeline with the capacity to transport 3.5 billion liters per year, the construction of storage capacity and unloading facilities at Matola port, on the outskirts of Maputo, and a storage area in Nelspruit, South Africa.

The shareholders of Petroline Holdings, Petroline RSA and Petroline are Petróleos de Moçambique, Gigajoule International, Companhia de Desenvolvimento de Petróleo de Moçambique the WOESA consortium, which already have a license in South Africa and teh concession in Mozambique to move ahead with the project.

Under the terms of the memorandum of understanding, Petrofac while acquire a 25 percent + 1 share stake. (macauhub)