SA looking for new oil suppliers to replace Iran

oil_PODThe South African government has assured consumers that oil supplier changes will not bear any immediate cost consequences. (Image source: POD/Flickr)South Africa is looking for new oil suppliers in Saudi Arabia, Angola and Nigeria to replace crude oil supplies from Iran

The changes are intended to fulfil sanctions conditions that were imposed on Iran by the US and EU recently.

The South African government has assured consumers that the change will not bear any immediate cost consequences.

South African department of energy director-general, Nelisiwe Magubane, said, “There had been no discussions about, or requests for, compensation from local oil companies who have to alter specifications of their local refineries as a consequence of changing their sources of supply.”

Engen, the only company operating in South Africa and importing crude oil from Iran, announced earlier this year that steps were being taken to wean it off Iranian supplies. Another oil giant, Sasol, also announced that it had already taken action on the issue.

Engen spokesman Tanya Landsberg said, “We have suspended imports from Iran. We are an integrated oil company and have made sure of all our contingency plans.”

The changes are rather abrupt considering that even in April Iran was supplying more oil than Saudi Arabia to South Africa.

Iran was supplying 5.6 billion litres of oil valued at ZAR 28.3 billion (US$3.4 billion) while Saudi Arabia was providing 5.5 billion litres at a higher value of ZAR 29.4 billion (US$3.5 billion) to South Africa.

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