National oil and gas company PetroSA's mandatory shutdown of its Mossel Bay gas-to-liquids plant and offshore platform operations was 80 percent complete, PetroSA's vice president for operations, Dan Marokane, said on Friday.

The shutdown, which started on 22 September and is due to end next month, marks a departure from PetroSA's previous practice of conducting its own shutdowns. The success of the shutdown will determine if the company had made the right decision.

PetroSA has hired engineering management firms Grinaker LTA and Kentz to conduct the shutdown.

The shutdown, which will cost PetroSA R495-million, has halted operations at the refinery and the platform, 86km south of Mossel Bay.

Opted for external contractors

PetroSA has said it opted for external contractors in order to improve efficiency and the financial benefits. "It will also allow us to focus on quality supervision and safety. We believe that this was a correct decision in terms of the quality of work," Marokane said.

The shutdown of the refinery and the offshore gas platform was almost complete, he said. "In fact, as of today (Friday), the shutdown is 80 percent complete." Marokane said operations were scheduled to recommence early next month.

At the peak of the shutdown, there were about 5600 people on site, he said. This figure had since fallen to about 4400 people as the shutdown progressed. Of these, 65 percent were workers drawn from the local community of Mossel Bay, Marokane said.

PetroSA, formally known as the Petroleum, Oil and Gas Corporation of SA, sells the bulk of its fuel and products to SA's oil companies, which market these through their own retail networks under their own brand names in parts of the Western Cape, Eastern Cape and Northern Cape.

Shutdown conducted a year earlier

Its petrochemical products are exported to Europe, the US, the Middle East, the Indian subcontinent and the Asia-Pacific region.

Marokane said PetroSA was satisfied with safety performance in the shutdown. There had been three lost-time injuries (in which workers were not able to report for the next shift because of injury).

The shutdown, which PetroSA conducts every four years, is in compliance with the Mine Health and Safety Act, the Occupational Health and Safety Act, and PetroSA's operating permit.

The current shutdown was conducted a year early in order to avoid product supply disruptions next year when SA hosts the 2010 Soccer World Cup tournament, according to PetroSA.

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