SAPREF's cleaner fuels project receives its first shipment of large equipment as it approaches halfway

22 January 2005

Durban - The first shipment of large equipment for SAPREF's R700 million cleaner fuels project (called LION) has arrived at port after a 15-day voyage from Malaysia. The equipment, consisting of three columns which cost about R6 million, will be transported to the SAPREF refinery today (Saturday, 22 January 2005) and tomorrow.

This comes as SAPREF approaches the halfway mark in its project to produce only lead-free petrol and low-sulphur petrol and diesel according to new government requirements. SAPREF has chosen not to replace the lead in its petrol with other octane boosting additives, but will achieve the high octane requirement through further refining of petrol components.

Tjalling Terpstra, the LION project manager, said that because of the highly specialised nature of the project, expenditure on the equipment and services required, about R180 million, will be divided evenly among overseas and local companies.

He said: "Although these columns have been sourced overseas, local companies have been involved during their manufacture and transportation. SAPREF and its project management partner Fluor South Africa. have overseen the construction process throughout, while SAFCOR-Panalpina, a Black Economic Empowerment company, was contracted to manage the shipping, and Natro Freight the loading and road transportation. It is also worth mentioning that all the labour used for the construction of the LION project is South African, and that represents a financial contribution of about R180 million."

Today's shipment consists of three distillation columns built in Malaysia over a 12 month period. The largest column is 60 meters long and 4.5 meters in diameter, and will be one of SAPREF's highest columns once erected. Because of its size, it had to be built in two separate parts to ensure safe transportation. The column will be used in the distillation of high octane components for SAPREF's heavy metal free unleaded petrol. The other two columns are 25 meters long and 2 to 2.5 meters in diameter.

SAPREF and its contractors are working closely with the metro police to ensure the safety of road users during the columns' transportation from the harbour to the refinery. The columns will be transported in four trips today and tomorrow using 96-wheel and 64-wheel hydrolic suspension trucks. The trucks will travel under police escort at about 10km per hour along a predetermined 20km route that avoids the M4 and N2 freeways. Once at the SAPREF refinery, the columns will be kept in a car park area while being prepared for final installation. .

Notes to the Editor
PROJECT NAME:
The acronym LION stands for Large Increase in Octane Number.

PHOTOGRAPHS/VIDEO FOOTAGE
Photographs and video clips of the offloading of the columns from the ship and the transportation of the first column to the refinery will be available tomorrow, Saturday 22 January.

COMPANY PROFILE:
The SAPREF crude oil refinery is a 50/50 joint venture between Shell South Africa Energy and BP Southern Africa. SAPREF is southern Africa's largest crude oil refinery, with 35 percent of the country's refining capacity. This equates to 180 000 barrels of crude oil per day or 8.5 million tons per year. SAPREF's facilities comprise a single buoy mooring through which 80 percent of South Africa's crude oil is imported, a storage facility at the Durban harbour, joint bunkering services and the refinery itself, which is located in Prospecton. The refinery has been operating since 1963. More than R480 million has been invested in environmental improvements since 1993, including a R350 million project commissioned in 2002 to reduce sulphur dioxide emissions from the refinery by 46 percent.

For more information contact:
Phumi Nhlapo
SAPREF Communications Officer
Tel: 031-480 1303
Fax: 031-468 1111
Cell: 082 885 7938
email: nhlapop@sapref.com