PROJECT DISPUTE
Enviroshore denies stalling in oil deal
The company has yet to implement the crude recovery project three years after signing a deal
A South African company that borrowed $15.4m worth of oil sludge from the government to help fund the recovery of crude stored in a mine during apartheid has yet to implement the project more than three years after the contract was signed, according to a person familiar with the situation. The project sprung from a request for proposals issued in 2013 by the Strategic Fuel Fund (SFF) to recover and reprocess sludge. One of the respondents was Enviroshore Trade and Logistics, which said it believed that there could be as many as 5-million barrels of crude in the Ogies coal mine in eastern Mpumalanga. The company offered to retrieve it on condition it was loaned 300,000 barrels of oil from the nation’s strategic reserves. It was agreed it would keep 70% of recovered fuel. International sanctions hindered SA from buying oil during apartheid and the SFF was tasked with ensuring the country had sufficient fuel supplies. The entity continued to manage strategic fuel stocks and storage fac...
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