South Africa to buy crude oil from Nigeria

South Africa to buy crude oil from Nigeria

South Africa indicated on Thursday that it would purchase crude oil from NIgeria, following uncertainties in the supply of oil from Iran.
South Africa’s Deputy President, Kgalema Motlanthe, told newsmen in Cape Twon on Wednesday thtat his nation was looking to Nigeria to fill the void.
Speaking at the signing of a Memorandum of Understanding with Nigeria’s Vice-President Namadi Sambo, the South African deputy president said purchasing oil from Nigeria was part of the option open to it.
The South African decision follows international pressure to comply with sanctions against Iran, from where it gets about a quarter of its crude needs.
“We would say to our Nigerian brothers that there will be demand for their crude oil because we don’t want to source our oil from areas that are likely to be unstable.
“Indeed, we are quite confident that Nigeria will become one of our trusted suppliers of crude,” he said.
Motlanthe said PetroSA and private traders were expected to look at supply agreements for oil from Nigeria.
South Africa’s Minister of Energy Dipuo Peters had last week said the government would decide on its response to the threat by the United States to impose sanctions on Iran by the end of the month.
Responding, Sambo said Nigeria was ready to offer economic support to South Africa in line with the economic cooperation between the two countries.
He said the agreement would help in strengthening and promoting the business environment in the continent’s biggest economies.
The Vice President said the agreement would also enable the two countries to bring in business people from both countries to explore investment opportunities in the countries.
A Memorandum of Understanding on economic and technical co-operation was also signed between, Nigeria’s Minister of Trade and Investment, Olusegun Aganga and his South African counterpart Rob Davies.
Another MOU was also signed between Aganga and South Africa’s Minister of Finance Pravin Gordhan, to offer
mutual assistance in customs administration of the two countries.