Pretoria – South Africa has suspended almost all oil imports from Iran, its biggest crude supplier, in response to US diplomatic pressure, a senior diplomat said on Thursday, adding Pretoria was unhappy about being strong-armed by Washington.
Iran accounts for about 29% of oil imports to South Africa, according to the US energy information administration, making it tough to switch suppliers.
South Africa is on a state department list of 12 countries that buy Iranian oil and could have been subject to US sanctions had it not significantly cut purchases.
Ebrahim said he did not agree with the US move to impose sanctions on countries that purchase Iranian oil. But Pretoria was forced to abide by it due to the economic hit South Africa would take if it did not comply.
“We don’t have any choice in the matter,” he said.
Oil refiners
The biggest buyer of Iranian crude in South Africa is Engen, majority owned by Malaysia’s national oil company Petronas. The company could not be reached for comment.
Other refiners in South Africa include petrochemicals group Sasol, BP, Shell, Total and Chevron. BP and Chevron said in February they were not sourcing any Iranian crude.
Sasol [JSE:SOL] confirmed on Thursday it had found alternatives to the Iranian product. The company said in January its oil unit was procuring 12 000 barrels per day, or 20% of the crude required by its Natref refinery, from Iran.
Sasol did not identify the new sources.
Some South African refineries are designed to treat Iranian-type crude only, and refiners would have been hard-pressed to replace those supplies with other products.
Any disruption in crude imports could further hit fuel supplies and increase travel expenses in South Africa, already volatile because of strikes and refinery problems.
Sasol is also in talks to divest its 50% stake in Arya Sasol Polymer company, a joint venture with Pars Petrochemical Company of Iran.
The venture produces ethylene and polyethylene, which are used in the production of plastics.
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