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PetroSA applies for Nigerian oil

Jun 07 2012 07:52

Johannesburg - PetroSA has made an application to the Nigerian National Petroleum Company (NNPC) for a commercial crude oil allocation, it said on Wednesday.

"We have not yet received any response from the NNPC," spokesperson Thabo Mabaso said.

Earlier, the Democratic Alliance said PetroSA's attempts to secure alternative crude oil supply from Nigeria had been unsuccessful.

"The NNPC is of the view that PetroSA's application should be a 'government to government application', rather than a commercial one," DA energy spokesperson Jacques Smalle said in a statement.

"We currently import 25% of our crude oil from Iran. Sanctions against Iran have put South Africa under immense pressure to secure (an) alternative sweet crude oil supply by the end of June."

Smalle said the refineries in the country were ill-equipped to process heavy-sulphur crude from Saudi Arabia and other oil-producing nations, and that finding alternative suppliers was difficult.

"If the application for Nigerian crude is not submitted this week, South Africa's chances of securing a contract will become increasingly slim," he said.

"If South Africa fails to secure the Nigerian crude contracts, we face the prospect of becoming reliant on crude oil supply bought at much higher spot prices. This will likely increase local petrol prices."

Smalle said the NNPC would award its oil futures contracts on June 15 and that the country's application should be corrected and, with the necessary governmental intervention, secured before the end of this week.

The energy department's spokesperson could not be reached for comment.

nnpc  |  petrosa  |  iran  |  oil stocks


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