30 August 2015 - 11:09
  • News ID: 246068
S. Africa Eyes Boosting Energy Ties with Iran

TEHRAN August 30(Shana)--An Iranian deputy petroleum minister says South Africa has indicated its interest to buy oil from Iran, saying the African country also has welcome forming partnerships with Iran in other energy areas such as refining, petrochemical and LNG industries as well as boosting technology exchange with Iran.

Following a meeting with South African Deputy Energy Minister Thembisile Majola in Tehran, Mansour Moazzami said Iran assumes a high priority for trade interactions with Pretoria, adding the African country enjoys vast potentialities in different areas, "but unfortunately in the past years, the circumstances have not been favorable for activating the potentialities [for Iran]." 

He highlighted the rich background of petrochemical cooperation between Iran and South Africa, expressing hope that the two countries will redeem their joint activities in various sectors of the oil, gas and petrochemical industries. 

Before the imposition of vast energy embargoes on Iran in 2011, S. Africa's Sasol participated in a $900-million polymer joint venture with the Iranian state-owned petrochemical company, Pars Petrochemical Company, which produces ethylene as well as high and low density polyethylene. 

The joint venture was known as the Arya Sasol Polymer Company. Iran and South Africa equally invested 1.35 billion euros in the project. 

S. Africa Willing to Buy Iranian Crude Oil

Moazzami said in the past South Africa has been a major customer for Iran's crude oil and the two sides have experienced favorable relations in this area. 

Tehran-Pretoria trade wilted under the unprecedented western sanctions imposed on Iran to curb the Islamic Republic's nuclear activities. 

"During the meeting, we stressed restoring Iran's crude oil supply to South Africa by bringing it to the pre-sanction era,… It was agreed that negotiations continue at expert level and be pursued by the international affairs department of National Iranian Oil Company," said Moazzami. 

Before the sanctions were imposed, Iran was the chief supplier of crude oil to South Africa which purchased 380,000b/d of crude oil from the former. 

South Africa has also agreed to by petrochemical products from Iran, said Moazzami, adding the African country has pledged to set the grounds for expanding Iran's refining industry by assisting in construction of new refineries which will boost Iran's refining capacity. 

Furthermore, construction of gas to liquid (GTL) refineries in cooperation with Iran's National Petrochemical Company (NPC) was also agreed by S. Africa, the official added. 

"South Africa is viewed by Iran as an important and influential country in Africa and we are trying to remove obstacles to boosting mutual cooperation with the country," he said. 

For her part, South African Deputy Energy Minister Thembisile Majola underlined long-lasting Tehran-Pretoria relations and expressed hope that the ties will boost in all areas including oil, gas and petrochemical industries once western sanctions on Iran are removed. 

"By acknowledging Iran's new conditions following the lifting of sanctions, South African energy companies can be encouraged to restore their presence in Iran and prepare for join business with Iranian companies," she said. 

Majola further stressed Pretoria's readiness to help open up a new chapter in energy cooperation between South African and Iranian companies, and said transfer of GTL technology and forming joint ventures with Iranian companies are among the areas favored by South African companies. 

"We are also willing to import LNG cargoes from Iran," she said. 

Also in the meeting, South Africa's Energy Department Deputy Director-General Tseliso Maqubela said the country has plans to raise its refining capacity from the current 300,000b/d to 700,000b/d in the coming years, and said Iran and South Africa can enjoy partnerships in boosting their refining capacity and constructing new refineries. 

News ID 246068

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