UK company to develop South African gasfield

Nov 26, 1999 01:00 AM

The Minister for Trade Richard Caborn has announced that ECGD will offer financial backing to a Leatherhead-based company, to enable them to develop their $ 300 mm contract to develop a gasfield, and its surrounding area in the Bredasdorp Basin in South Africa.
Dresser Kellogg Energy Services Ltd have already won a contract to drill seven wells and to provide production transport and processing systems on behalf of Mossgas Ltd, the South African oil from gas producer. This is the largest contract ever to use the alliance principle in South Africa, whereby the contractor takes a share in both the rewards and the risks of the contract.
John Hoar of Dresser Kellogg Energy Services Ltd told, "This contract is an extremely important breakthrough with South Africa. It will generate work in the UK and also for small sub-contractors in the country." Mr Caborn believes that the contract will provide the UK and South Africa with valuable work.
ECGD will be providing a $ 231 mm loan arranged by a German Bank in London and the Dutch bank ABN AMRO on behalf of Mossgas' parent company the Central Energy Fund to assist with funding of the venture. "The contract has been entered into on a cash basis and the loan is being dispersed on a monthly basis by our client", explained Mr Hoar. This development should save South Africa around 7.5 bn rand in its lifetime, in imported fuels and will enable Mossgas to branch out into the petrochemical business.

Source: IINX via Iinoil
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