Scenario 7
Green Connection's
Double booked
October 2023
Description
PetroSA had issued two tenders relating to funding of gas well expansion, for an estimated R21.6bn. Equator was selected to fund the project under one tender, while Theza was selected to execute the project and provide funding under another. A new joint venture was formed between the two companies and a final contract was awarded. Concerns were raised that the final contract was even broader than the original RFPs.
Set-up
Your goal is to restart your long mothballed gas-to-liquid (GTL) refinery by drilling for gas off the coast of South Africa. You’ve issued three tenders, one to finance the restarting of the refinery, one to drill new wells and one to fund the drilling. It’s an expensive project, the drilling is going to cost R21.6 billion[31].
The dilemma
Somehow you’ve managed to mess up the tender process and contract two separate firms to provide the funding. Oops! Do you…
