Business
South Africa looking to purchase crude from Nigeria
With the uncertainty over supply of oil from Iran, South Africa is partnering with Nigeria for the purchase of its oil, the Deputy President Kgalema Motlanthe said, following the signing of a Memorandum of Agreement with the Vice President of Nigeria, Namadi Sambo, on Wednesday.
South Africa may be forced to comply with a US order to cease buying oil from Iran, from which it sources about a quarter of its oil, or risk economic penalties from America. The Minister of Energy, Dipuo Peters, last week said government would decide on its response to proposed sanctions by the end of this month.
Motlanthe said PetroSA and private traders were expected to look at supply agreements for oil from Nigeria.
“We would guarantee going forward to our Nigerian brothers that there will be demand for their liquid fuel, because we don’t want to source our fuel in areas that are likely to be unstable,” he said.