SA state-owned PetroSA signs an understanding with China International United Petroleum and Chemicals Company
PetroSA has announced it has signed a memorandum of understanding with the China International United Petroleum and Chemicals Company or Unipec.
Both companies plan to setup a working group to explore business options.
According to PetroSA, this would enable them to discuss the purchase and sale of crude oil and refined petroleum products.
PetroSA acting president Yekani Tenza welcomed the agreement with Unipec, one of the world’s largest oil trading companies.
“PetroSA has been given a mandate to secure SA’s fuel supplies. In order to meet this mandate and ensure that we grow into a leading African energy company, we must form partnerships with credible, successful companies. Unipec is one such company.”
This week, PetroSA announced it had to write off a R270m loan to a subsidiary in the year to March and has also provided for material impairments of R945m on its intercompany loan account.
While total assets are R24,2bn at year-end and cash on hand at R11,8bn, it says bad loans have affected the state-owned company.
The loan to loss making exploration subsidiary PetroSA Gryphon Marin was written off, while the R945m unsecured loan to PetroSAEgyptwas impaired.
PetroSA has abandoned its “4-Well” drilling campaign in Egypt due to its lack of success.
Earlier this year PetroSA and the New York Stock Exchange-listed multinational General Electric signed a memorandum of understanding which both sides said could lead to future commercial co-operation.
In June, PetroSA signed a memorandum of understanding with Italian oil company Eni, which led to the two announcing a joint evaluation of potential acquisitions of “upstream assets”.