(downstreamtoday) -- South
Africa's national oil company PetroSA and China Petroleum and Chemical Corp.
(SNP), known as Sinopec, will build a refinery that could process several
hundred thousand barrels of oil a day and cost several billion dollars to
PetroSA Group Chief Executive Nosizwe Nokwe said Monday that by teaming up
with the Chinese company it would enable the national oil company to complete
the "mega" project, which has been in discussion since 2008 but has struggled to
find sufficient funding.
China's resource companies are driving much of the country's foreign
investment on the continent. In 2011, Standard Bank estimates
merger-and-acquisition activity from China on the continent totaled USD5
China has also become Africa's biggest trading partner and the new refinery
could play a role in helping China's ambition to expand global resource trading
by being a destination for crude oil.