SA, Angola 'close to signing oil deal'

| Friday October 15, 2010 00:00

PetroSA is in negotiations with Angola's parastatal oil firm, Sonangol, to enter into crude production, deep-water exploration and refinery operations in Angola, Energy Minister Dipuo Peters said on Tuesday.

A deal with Angola will ensure crude supply for PetroSA, which is tasked with ensuring the security of supply of liquid fuels.

Department of Energy spokesman Bheki Khumalo on Tuesday confirmed the deal. 'Angola is a strategic partner of SA in ensuring security of supply .' Khumalo said there were synergies to be exploited between PetroSA and Sonangol.

Speaking at the end of a visit to Luanda to meet Angolan Oil Minister Jos Botelho de Vasconcelos, Ms Peters said an agreement between PetroSA and Sonangol could be signed later this month, when Angolan President Jos Eduardo dos Santos visits SA , the newspaper reported.

'The petroleum industries of SA and Angola have all the right conditions to complement each other,' de Vasconcelos said. Under the deal, PetroSA could get a stake in Angola's new Lobito refinery, he said.

 Construction on Angola's 200, 000- barrel-a-day refinery is due to begin later this year after repeated delays. When finished in 2014, it is expected to end Angola's dependence on imports of refined petroleum products.

Angola pumps 1,9-million barrels of oil a day, but imports 50 of its refined fuel.

The deal would expand on one signed last year during a visit by President Jacob Zuma to Luanda .

 Peters said southern Africa had the potential to become energy independent if the countries of the region co-operate. PetroSA plans to build a 40, 0000-barrel -a-day crude oil refinery at Coega, near Port Elizabeth.

The government's energy security master plan for liquid fuels recommended that PetroSA procure 30 percent of crude oil consumed in SA by 2020. (Businessday)