South Africa's state-owned oil company PetroSA said on Tuesday it has received environmental authorisation for its 400,000 barrels-per-day refinery project at the industrial port of Coega.

The company said in a statement that the department of environmental affairs gave the green light this month.

The project, referred to as Ikhwezi, is located 40 km (25 miles) south-east of the current F-A production platform.

PetroSA expects first gas production off the F-O field to start in 2013, which will help sustain the life of its 45,000 bpd Mossel Bay gas-to-liquids refinery.

The project, expected to cost around $9-10 billion, has faced delays because of financial woes.