$10bn investments in South Africa: Al-Falih

Saudi Arabia plans to build an oil refinery and a petrochemicals plant in South Africa as part of $10 billion of investments in the country, Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said on Friday.

Saudi oil would be used in the planned refinery whose construction would be led by state energy company Saudi Aramco, Al-Falih said in comments following a meeting with South African Energy Minister Jeff Radebe in Pretoria.

"There have been exchanges of talks by Saudi Aramco teams and they have been supported by the South African energy ministry," Al-Falih said.

The exact location of the refinery and petrochemicals plant will be finalized in the coming weeks, Radebe said.

Saudi Arabia was also interested in using South Africa’s major oil storage facilities, Al-Falih said, adding that Saudi utility developer Acwa Power was looking at investing in South Africa’s revamped renewable energy program.

He also confirmed that there were discussions about the kingdom investing in South Africa’s state defense company Denel, which was exclusively reported by Reuters in November.

South African President Cyril Ramaphosa is trying to woo foreign investors to help revive a struggling economy as he prepares for a parliamentary election this year.

Crown Prince Muhammad Bin Salman, deputy premier and minister of defense, met with Ramaphosa on the sidelines of the G20 summit in Argentina last November.