Sasol to avoil Iran oil

JOHANNESBURG—South Africa's Sasol Ltd. is starting to diversify oil sources away from Iranian imports, it said Wednesday, as pressure from the U.S. and European Union mounts.

South Africa, which relies on Iranian crude for roughly 25% of its oil imports, is currently debating how to approach increased sanctions being imposed on Iran by the U.S. and EU, aimed at choking off a key source of revenue from the regime. This week the EU enacted new sanctions on Iran, including a planned oil ban effective July 1 and banking and shipping sanctions.

Sasol, the world's largest producer of motor fuels from coal, relies on Iranian oil imports for about 20% of its crude requirement, or 12,000 barrels a day, at its Natref refinery.

"In view of recent developments regarding trade restrictions and possible oil sanctions against Iran, Sasol Oil is diversifying its crude oil sourcing," a company spokeswoman said, declining to give
further details.

The U.S. Deputy Secretary of Energy Daniel Poneman this month met with South Africa's energy minister to talk about oil sanctions and U.S. representatives have been meeting with South African companies to explain the impact new sanctions will have.

"South Africa has not made a decision," a spokesman for the Department of International Relations said, in regards to the country's position on sanctions against Iran. "The matter is currently under discussion."

Along with Sasol, which not only imports Iranian oil but also has a 50% share in a $900 million Iranian petrochemical project, South Africa's flagship telecommunications company MTN Group Ltd. has a
joint venture in Iran.

MTN said Wednesday that it is "business as usual" at its 49% stake in Iran's second-largest mobile phone operator. MTN derives 21% of its subscriber base from Iran, according to its most recent figures.

"There is no change in our operation," an MTN spokesman said. "Sanctions in Iran have been going on for decades."

South Africa's Minister of Communications Dina Pule said her department wouldn't put pressure on MTN to pull out, even if countries from Europe or the U.S. tried to lean on the company.

Sasol, which has U.S. interests, announced late in 2011 that it started preliminary discussions to exit its venture in Iran on concerns U.S. sanctions could hurt its business. On Wednesday, the company reiterated that those talks are ongoing and are taking place with a number of business and government partners.

Source: online.wsj.com
Tags: Iran oil,Sasol,MTN,Iran sanctions

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