Page 9 - AfrOil Week 34 2019

AfrOil PROJECTS & COMPANIES
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SBIDZ actively seeking new partners for oil and gas operations base
SBIDZ
SALDANHA Bay Industrial Development Zone (SBIDZ) is moving closer to establishing itself as South Africa’s only oil and gas operations base operated exclusively by domestic compa- nies. It has stepped up e orts to attract investors and tenants and will intensify its campaign in November.
Kaashifah Beukes, the acting CEO of SBIDZ, told Engineering News Online recently that her organisation was already in talks with 58 potential tenants of the special economic zone (SEZ). She did not name any of these prospects but said SBIDZ was particularly interested in working with companies involved in nine types of high-potential operations, including main- tenance and repair for local and international oil and gas operations and fuel and lubricant supply.
She further stated that the SEZ had recently achieved another important milestone. In July, she noted, the South African Revenue Service (SARS) certified the SEZ as a customs-con- trolled zone over at least 70% of its area. With this SARS certi cation in place, she explained, investors in the zone will have the right to apply for rebates on certain duties, including val- ue-added tax (VAT).
is is sure to make the SBIDZ more attrac- tive to prospective clients, Beukes added. Previ- ously, she said, marine operators seeking repair services in Saldanha Bay had to decide whether they were willing to pay VAT withholding tax equivalent to 15% of the value of the vessel in
question.
“Given that most vessels are valued at above
$20mn, the tax has acted as a major disincentive to servicing a vessel or a rig in the SBIDZ,” she remarked.
Without the tax, she said, domestic oil, gas and marine service providers are likely to secure a larger share of the repair jobs now being car- ried out in South African shipyards. Currently, she said, only 5% of the 9,000 port calls made in South African harbours each year lead to the signing of repair and service contracts with domestic companies.
Beukes highlighted SBIDZ’s advantageous location, pointing out that the SEZ was within 24 hours of sailing time from the Horn of Africa trade route. She went on to say that SBIDZ was ready to accommodate a large share of the 30,000 vessels that pass through South African waters each year. Since Saldanha Bay is a deep- water port, with waters up to 23.7 metres deep, it can accommodate ships of all sizes, she said. It is also prepared to establish additional berthing capacity, since it is a newly established facility, she added.
South Africa’s government established SBIDZ on a 3.56-square km site in 2013. Since then, the provincial government of Western Cape has purchased additional land for transfer to the SEZ. It has also concluded a lease agree- ment with the Transnet National Ports Author- ity (TNPA) to make more port-side real estate available to potential investors in the zone.™
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