Construction of Strategic Oil Reserve facility starting in April

By Khulile Thwala

The Acting Minister of Natural Resources and Energy Jabulani Mabuza has revealed that the construction of the Phuzumoya Oil Reserve will commence in April.

He said this during an interview on national television, where he maintained that they were in the final stages of talks with the contractor and all involved stakeholders.

“Initially our target was to begin construction in March, however, to be on the safe side, the date expected for the commencement of construction is April. The contractors are scheduled to start that month. It is critical to point out though that this all depends on the ongoing discussions with the financiers and contractors because you cannot start a project of this magnitude without proper funding as these projects tend to cost more than initially expected,” he said.

The acting minister emphasised the importance of this project for the country, stating that the oil reserve will ensure that the country has fuel reserves for up to 60 days, which will minimize the risk of vulnerability to fuel shortage crises.

The strategic oil reserve will be operated by the Eswatini National Petroleum Company (ENPC). Previously, the project was estimated to cost E3.2 billion following budget estimates for the financial year 2021/22 reflecting this.