SA government on US/EU Iran oil sanctions

23 Mar 2012

No decision has been taken by Government on the sanctions issue because the investigation of the response options is far from complete (see Mail & Guardian report).

The Government is also talking to a number of other countries that supply crude oil to determine what their potential to supply is.

So far all these engagements have been useful and will enhance the long term solution that government is working towards. They will feed into the overall response, which will be presented to Cabinet towards the end of May 2012.

The supply of fuel will generally not be impacted by any of the engagements that are currently underway. Nor do we foresee any supply disruptions or impact on the consumer.

SA government options

The government of South Africa is considering all options in terms of the potential impact of the United States and European Union sanctions on Iran.

Part of the response includes consultation with a number of countries to look at how they are approaching the matter.

Amongst the countries consulted are Iran, United States, Saudi Arabia, Malaysia, Angola and others.

The US was consulted in particular to try and understand the nature of the sanctions, but also for them to understand the potential impact on South Africa and the region of SADC. The consultations are still continuing.

Refinery issues

In South Africa crude oil refineries are privately owned and as such procurement of crude oil is done by each of these companies.

The oil companies that own the privately owned refineries constantly change their procurement practices and sourcing strategies to suit their own plans. The media is therefore, advised to direct all refinery based questions to the various companies for their response.

General

There is no need to panic government is doing everything possible to safeguard the long term fuel supply. As a matter of policy, the government believes in the use of multilateral bodies to resolve disputes and conflicts.

South Africa heeds United Nations Security Council, and African Union resolutions.

The current sanctions are bilateral in nature, however, due to the global financial system have a long reach.

Statement issued by the Department of Energy, March 23 2012

Click here to sign up to receive our free daily headline email newsletter