Durban - South Africa could get oil at a discounted price after Energy Minister Tina Joemat-Pettersson has finalised discussions with the government of Iran.
This follows her visit to the Islamic Republic last week where she was part of a ministerial delegation accompanying President Jacob Zuma on a state visit.
Read: Iran increases oil production
Iran had been slapped with sanctions by the UN for years, but recently it lifted the sanctions against Iran following the election of the reformist government of Hassan Rouhani.
Joemat-Pettersson described the pending deal with the Iranians as important for South Africa. She said the negotiations between the two countries were at a sensitive stage.
She added that if South Africa managed to strike the deal with Iran, it would lead to cheaper oil for the country and decreased pressure on consumers.
“On the Iran trip we were negotiating the official selling price for crude oil. We have not made any deals, I have not signed any deal with Iran,” she said.
“We simply went there to negotiate the price of oil. The price must be competitive, and if it is competitive we will be able to buy oil from Iran,” she said.
She described the relations between Iran and South Africa as beyond bilateral trade relations. This is in light of the fact that Iran supported South Africa during the struggle.
She said they were looking at oil prices that would benefit both the South African consumers and businesses.
The US is one of the major trading countries in the world, and the sanctions imposed on Iran hit the country hard.
On his visit Zuma called for South African companies to take up business opportunities in Iran.
Zuma’s delegation also included a large group of business people. He said the business opportunities available in Iran would help uplift South Africa’s economy.
Joemat-Pettersson also said they were looking for joint gas ventures with the Strategic Fuel Fund. The government was also looking for partnerships to build refineries in Nqura, in the Eastern Cape.
THE MERCURY